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Infosys Technologies
Presentation By S Vishnupriya Rahul Ck Dheera Divya Akhil V
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INFOSYS- OVERVIEW
Indian multinational that provides business consulting,
revenues.
Infosys has 798 clients across 30 countries.
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Contd
It provides software development, maintenance and
independent validation services to companies in banking, finance, insurance, manufacturing and other domains.
Infosys has a growing global presence of more than
160,000+ employees worldwide, 73 offices and 94 development centers in the United States, India, China, Australia, Japan, Middle East, and Europe.
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Values
Customer delight: The Company has committed itself to
surpass the expectations of their customers. Leadership by example: It has become an example for all the industries by setting themselves a standard in their business. Integrity and Transparency: all the dealings which they carry out are ethical and transparent. Fairness: the company has committed themselves to carry out all their dealings in such a way that they will be earning trust and respect from it. Pursuit of Excellence: They have committed themselves to continuously improve their teams, services and products.
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New IT landscape
Competition from relatively modest firms and big guns Growing client base (clients has increased to nearly 800 from 460.) Employee dissatisfaction
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3.
4.
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pricing policy to drive revenue growth. "They are not willing to lose incremental revenue market share to competition. These newer tactics compromises on Infosys's high margin strategy. But the company is trying to use other levers to keep margins from dipping much. One such big lever is improving employee utilization, which has fallen to below 70% in recent quarters.
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Major Strategies
The first one was the global delivery model. The model
emphasized on producing where it is most cost effective to produce and selling where it is most profitable to sell.
value chain ensures quality and increases value
The third feature is PSPD. predictability of revenues sustainability of the predictions profitability of revenues a good de-risking model.
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the number of senior employees and subcontractors it employs at on-site locations as the company is well positioned to regain its lost market share.
It has to rethink about the increasing cost of adherence to
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Repository @ Infosys for Driving Excellence). so that the company can gain efficiency, increased production and better quality in all the processes that are being carried out by the company. 3/30/2014
Contd
Focusing mainly on improving the skills of their employees
Infosys has achieved an enormous growth in their business and this has been a distinguishing factor from all its competitors as per the opinions of the companys customers.
Infosys is trying to extend their competencies by leveraging
on IT Infrastructure Services (IT IS). It contributes only 7% to Infosys's revenues, the lowest in its peer group.
Infosys has forged ties with cloud service providers to
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3.Specialized Competencies
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Coordination
Multi-sourcing Governance through Operational Level
Agreements.
Infosys has adopted and refined the concept of Operational
Level Agreements (OLAs), a metric-based approach to coordinate and manage multiple services.
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Managerial competence
Infosys has inducted 12 new faces to the executive council
(EC). This takes the total strength of its highest decisionmaking body to 30. They have strengthened the executive council to help drive focus on key growth areas. Members of the executive council will participate in the company's business direction beyond their functional role. These leaders have the ability to transform themselves as solution providers standing their ground, and some could potentially make it to the company's succession slate as well.
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Communication
Employees were encouraged to communicate with each
other and with the higher management about interesting ideas and ways of solving problems through the electronic bulletin boards.
To improve communication, the managing director sent
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Creativity @ Infosys
Innovation co-creation at Infosys Labs
At Infosys Labs, co-creation with partners, academics, and
customers sits at the core of innovations in emerging technologies to build tomorrows enterprise.
Cross-industry innovation and co-creation are imperative to
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Organizational Alignment
INFOSYS works with clients in the course of their
helping them with practical, usable support and advice that can be translated to daily business challenges solved through implementation of new technologies or systems.
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providing strategies that incorporates transition as it relates to technology with flexibility to achieve optimum performance from the systems implemented.
Lack of user input, incomplete requirements and
especially changing requirements are some of the major reasons why information technology projects do not deliver the planned functionality on schedule and within budget.
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thought, action and behaviour with clearly defined and communicated goals from the company's executive team.
Infosys has achieved organisational alignment through
listening and observing through organizational assessments and done for other information technology.
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Pursuit of excellence
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Aggressive
People oriented
Outcome Oriented
Team oriented
Stable
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Action learning
Feedback system
Infosys Culture
360 Appraisal
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-Producing where it is most cost effective to produce and sell where it is most profitable to sell
Moving up the value chain
- Getting involved in a software development program at the earlier stage of its life cycle
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PSPD Model
Producti vity
Derris king
PSPD Model
Sustaina bility
Profitabi lity
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conflict.
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Change/Adversity Leadership
Operational Leadership
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Talent Leadership
Select, develop, and manage the performance of a team capable of executing the vision Attract, develop, and retain highly capable individuals to build the leadership pipeline Create an effective work climate to drive performance and requisite learning Develop, maintain, and leverage long-term internal and external relationships/networks Build effective relationships beyond just transactions with all internal and external business partners to the point of being a completely trusted advisor Create and leverage deep domain expertise in order to energize your strategy and team. Content leadership is about possessing and creating knowledge and mental models in your core discipline to outthink the competition.
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Relationship/Networkin g leadership
Content leadership
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Entrepreneurial leadership
Incubate new business ideas, models and working arrangements in new markets, new product segments and services to drive growth.
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Feedback
Developmental Relationships
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Organization Architecture
Shared values
Staff
style
Structure
systems
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organization. There is a major problem considered in regard with the top management running the organization. There is mismatch of the speed in the work progress between the top and lower level peers employees. Lack of relationship between the top and middle management
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Infosys Structure
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Employee Dissatisfaction
Peer to Peer communication is lacking which is leading to a
performance of the strategy which causes slack in the energy of the employees
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crisis and establishing themselves in the foreign market. This is hindered the strategy in new IT landscape.
Loosing out traditional strength while dealing with large
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Competition
Lack of devotion to profitability has caused a major
the lack of reach of the product and the competitors have over performed by 8 to 16 %
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Changes In Values
Can develop unconventional approach Focus more on employee centric approach Longer employee working tenure helped the company to
maintain a long-term relationship with customers and to maintain a competitive advantage over its rival software developers
Changes in structure
Decentralization They can divided into IBUs (India Business Units), each
IBU concentrated on a particular sector and this made the company more customer-focused. Managers of each IBU were empowered to take decisions to further the IBUs prospects and within each IBU the project matrix structure was carried forward. Decentralized system with an ability to take quick decisions
Changes in system
Should follow Open system Free-flowing information Output from one system becomes input to another
Reduced Effort: Automated testing of controls reduces effort for review. Reduced Audit Cost: Auditors place greater reliance on automated testing and reduce effort on substantive testing. Increased Frequency of Audit: CCM enables more frequent audit with reduced cost. Multi-Compliance Capability: CCM supports compliance with multiple regulations thereby ensuring controls are tested only once.
CHANGES IN STYLE
recognizes the importance of staffing, the value of
its human resource. So they put lot of attentions towards their assets. They have:Long working hours High variable salary Stiff dress code policy Low package than industrial average. ESOP options Reward system for overtime pay, merit par & skilled based pay.
contin..
A virtual organization has parts of the organization in
different physical locations Computer networks and communications technology are used to work on projects
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Describe exactly how things will function differently to increase one or more capabilities
Continue..
We think that by improving employee skills it helps infosys
to deliver the products as fast as possible according to the client specification through process quality and process cycle time. Through this company can achieve customer satisfaction and finally it will lead to increase in revenue of the organization
What are the flaws in design what new problems does it create?
Employee centric approach will lead to increase cost for the
organization trimming the number of senior employees and subcontractors will lead to employee dissatifaction The change in structure can effect the flaw of the organization
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manager has a responsibility to facilitate and enable change. Change must involve the people - change must not be imposed upon the people. To implement model of how the business organized & managed to achieve its strategic tasks To diagnose the capabilities of the organization & the environment in which it works.
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Politica l
Negativ e
Positive
Negativ e
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Economi c
1. Global IT Spending (Demand) from USA will increase in FY 2010. 2. Domestic IT Spending (Demand): The Indian domestic market will grow by 12.9 percent through 2013. 3. Currency Fluctuation. 4. Real Estate Prices: Decline in real estate prices has resulted in reduction of rental expenditure. 5. Attrition: After U.S recession in 2008-2009, companies are on a hiring spree and there is a revival of the job market, attrition rate is going to be high in 2010. 6. Economic Attractiveness due to cost advantage and other factors.
Positive Positive
Positive
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Social
1. Language Spoken: India has the second largest English-speaking scientific professionals in the world, second only to the U.S. English medium being the most accepted medium of education. Thus India boasts of large English speaking population. 2. Education: It is estimated that India has over 4 million technical workers, over 1,832 educational institutions and polytechnics, which train more than 67,785 computer software professionals every year. 3. Working age population
Highly Positive
Highly Positive
Positive
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Technologi cal
1. Telephony: a. India has the worlds lowest call rates b. Expected to have total subscriber base of about 800 million by 2015. c. India has the second largest telephone network after china. d. Teledensity of India is 49.50% e. Enterprise telephone services, 3G, Wi-max and VPN are poised to grow. 2. Internet Backbone: Due to IT revolution of 90s, Indian cities and India is well connected with undersea optical cables. 3. New IT Technologies: Technologies like SOA, Web 2.0, High definition content, grid computing etc and innovation in low cost technologies is presenting new challenges and opportunities for Indian IT industry.
Highly Positive
Positive
Positive
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Environmen tal
Energy efficient processes and equipments: Companies are focusing on reducing the carbon footprints, energy utilization, water consumption, etc.
Positive
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Legal
1. IT SEZ Requirement: IT Companies can set up SEZ with minimum area of 10 hectares and enjoy a host of tax benefits and fiscal benefits. 2. Contract / Bond requirements: Huge debates surrounding the bonds under which the employees are required to work, which is not legally required. 3. IT Act: Indian government is strengthening the IT act, 2000 to provide a sound legal environment for companies to operate especially related to security of data in transmission and storage, etc. 4. Companies operating in Software Technology Park (STPI) scheme was getting tax-benefit till 2010.
Positive
Negativ e
Positive
Negativ e
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clients to optimize the efficiency of their business. It has proven Global Delivery Model. (GDM). Commitment to superior quality and process execution. Strong Brand and long term client relationship. Status as an employer of choice in 2004. Ability to scale up. Innovation and leadership.
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Weakness:
Excessive dependence on US for revenues
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67% revenue from USA Excessive dependence on BFSI sectors for revenues. Weak player in Indian market. Only 1% revenue from India.. Low R&D spending as compared to other global IT companies. Only 1.3% of total revenue. Low expertise in high end consultancy and KPO. Infosys faces the highest attrition rate of 16% in the Indian software industry. Low compensation packages.
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Opportunities:
Domestic market to grow by 20%. Expanding into new
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geographies like Europe, Middle East, Latin America, China etc. Cash Rich (around USD 1 Billion) Acquiring companies to increase expertise in consultancy, KPO and package implementation capabilities. It acquired Zurich-based Lodestone Management Consultancy, which gives Infosys a profitable and strategic SAP customer base. Opening new offices and development centres in cost advantage countries such as Latin America and Eastern Europe. Aggressive strategy of expansion of ADMs, BPO, and software products into emerging markets. Diversification into new areas such as aviation, 3/30/2014 telecom and health care.
pressure in India and abroad. Intense competition in market for technology services could affect cost advantage. Failure to complete fixed priced, fixed time frame projects on time. So the company needs to shift to Time and Money kind of projects. Indian currency fluctuation.
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ideas are filed into clusters of similarity. Clusters are then identified as categories which are sorted in some meaningful manner. The diverse ideas of a group of contributors can be aligned in ways that represent the overall group notions and agreements for particular issues.
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Process
Participants are faced with questions and write
down possible answers on a sheet of paper. Participants choose a handful of their best answers and write them, one each, on large white cards. The facilitator takes all cards and attaches them to a board or wall in clusters of similarity. The group chooses a category name to represent each cluster and the facilitator labels them as such. Participants, as a group, are given the chance to rearrange cards, refine categories, and remove redundancies.
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way such as in order of importance or temporally. Discuss the results with respect to the original question, hopefully arriving at further insights through comparison and contrast. Finally they come to some common solutions to the question.
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Improve capabilities
Reward system compensation package not up
to industry average performance based reward , spot reward. Performance Appraisal -360 degree, MBO ,modern techniques. Employee Retention Programs- employee engagement, coaching ,mentoring, flexible working hours.
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If you are the general manager what are the implications for your own role, particularly your leadership of the organization, and how will you spend your time?
Being the GM first duty is to make sure that strategies
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implemented are executed with out fail. Monitoring the tasks undertaken to implement the strategies. Keep an eye on the existing employees morale during terminations. Effectively look after people management. Leadership by aligning personal and organizational goal. create more control while creating IBUs.
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Cont...
Monitor the decentralized approach.
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If you are not the general manger of the organization how can u help your boss gain new insights about the organization and lead a change process?
Collecting the feed back from the employees regarding
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the present problems. Analyzing their view towards the change. Finding out ways to improve employee satisfaction Suggesting proper appraisal system Could help the boss to create a continuous learning organization. Preparing the environment prior to change. Post change feed backs and follow ups.
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Plan in concrete terms the first step you plan to take when you return to your organization to begin the change process , what are the personal and organizational risk?
Preparing both internal and external environment
for change is the first and foremost challenge. Freezing process. The change in structure can effect the flaw of the organization. It could increase the cost. trimming the number of senior employees and subcontractors will lead to employee dissatisfaction.
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