SHRM – Application Exercise

Infosys Technologies
Presentation By S Vishnupriya Rahul Ck Dheera Divya Akhil V
1 3/30/2014

INFOSYS- OVERVIEW
 Indian multinational that provides business consulting,

technology, engineering and outsourcing services.
 It is headquartered in Bangalore, Karnataka.  Third-largest India-based IT services company by 2012

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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honesty. leveraging technology." Infosys' Mission Statement : "To achieve our objectives in an environment of fairness. employees." 4 3/30/2014 . delivered by best-in-class people. and courtesy towards our clients.Mission & Vision Infosys' Vision: "To be a globally respected corporation that provides bestof-breed business solutions. vendors and society at large.

Values  “Customer delight”: The Company has committed itself to     5 surpass the expectations of their customers. “Integrity and Transparency”: all the dealings which they carry out are ethical and transparent. services and products. “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. 3/30/2014 . “Leadership by example”: It has become an example for all the industries by setting themselves a standard in their business.

Industry Verticals or Domains Served • Aerospace and Defense • Airlines • Automotive • Communicat ion Services • Consumer Packaged Goods • Education • Energy • Financial Services • Healthcare • High-Tech • Hospitality and Leisure • Industrial Manufacturi ng • Insurance • Logistics and Distribution • Medical Devices • Pharmaceutical and Biotech • Public Sector • Publishing • Media • Resources Industries • Retail • Utilities 6 3/30/2014 .

) Employee dissatisfaction 3/30/2014 3. New IT landscape Competition from relatively modest firms and big guns Growing client base (clients has increased to nearly 800 from 460.Diagnosis of Major Problems 1. 7 . 4. 2.

8 3/30/2014 . One such big lever is improving employee utilization. "They are not willing to lose incremental revenue market share to competition.  These newer tactics compromises on Infosys's high margin strategy.Basic factor on which Infosys is banking upon ?  Infosys has become more aggressive on pricing  Infosys has selectively diluted its high margin and premium pricing policy to drive revenue growth.  But the company is trying to use other levers to keep margins from dipping much. which has fallen to below 70% in recent quarters.

9 3/30/2014 .  predictability of revenues  sustainability of the predictions  profitability of revenues  a good de-risking model.” The model emphasized on “producing where it is most cost effective to produce and selling where it is most profitable to sell.Major Strategies  The first one was the “global delivery model.” value chain” – ensures quality and increases value  The second feature of the strategy was “moving up the  The third feature is PSPD.

so that the company can gain efficiency. 3/30/2014 . increased production and better quality in all the processes that are being carried out by the company.  Introduced a service called as “PRIDE” (Process 10 Repository @ Infosys for Driving Excellence). Tasks undertaken to implement the strategies  Infosys will have to focus on reducing costs by trimming 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 global best practices.2.

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 company’s customers. the lowest in its peer group.  Infosys is trying to extend their competencies by leveraging on IT Infrastructure Services (IT IS).  Infosys has forged ties with cloud service providers to 11 service infrastructure clients. 3/30/2014 . It contributes only 7% to Infosys's revenues.

Specialized Competencies 12 3/30/2014 .3.

Coordination  Multi-sourcing Governance through Operational Level Agreements. a metric-based approach to coordinate and manage multiple services.  Infosys has adopted and refined the concept of Operational Level Agreements (OLAs). 13 3/30/2014 .

 They have strengthened the executive council to help drive focus on key growth areas. This takes the total strength of its highest decisionmaking body to 30. 14 3/30/2014 . and some could potentially make it to the company's succession slate as well.Managerial competence  Infosys has inducted 12 new faces to the executive council (EC).  These leaders have the ability to transform themselves as solution providers standing their ground.  Members of the executive council will participate in the company's business direction beyond their functional role.

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. the managing director sent mails every fortnight.  To improve communication. 15 3/30/2014 .

 Cross-industry innovation and co-creation are imperative to enhance the quality of ideation. and customers sits at the core of innovations in emerging technologies to build tomorrow’s enterprise. academics. co-creation with partners. 16 3/30/2014 .Creativity @ Infosys Innovation co-creation at Infosys Labs  At Infosys Labs.

Organizational Alignment with Strategic Task 17 3/30/2014 .

usable support and advice that can be translated to daily business challenges solved through implementation of new technologies or systems.  Infosys have worked with a wide array of organizations helping them with practical. 18 3/30/2014 .Organizational Alignment  INFOSYS works with clients in the course of their everyday work activities to help them achieve needed results.

19 3/30/2014 .  Lack of user input. As world continues to change Infosys specialize in providing strategies that incorporates transition as it relates to technology with flexibility to achieve optimum performance from the systems implemented. 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.

 Infosys has achieved organisational alignment through listening and observing through organizational assessments and done for other information technology. action and behaviour with clearly defined and communicated goals from the company's executive team. 20 3/30/2014 . Meaningful performance in Infosys is to align every thought.

Value Message of Infosys  Customer Delight  Leadership by example  Transparency  Fairness  Pursuit of excellence 21 3/30/2014 .

Culture Ingredients in Infosys Innovative Detail oriented Aggressive People oriented Organization culture profile Outcome Oriented Team oriented Stable 22 3/30/2014 .

23 3/30/2014 .

Infosys leadership process Skill Training Action learning Feedback system Infosys Culture 360 Appraisal 24 3/30/2014 .

Getting involved in a software development program at the earlier stage of its life cycle 25 3/30/2014 .Infosys Global Strategy  Global Delivery model -Producing where it is most cost effective to produce and sell where it is most profitable to sell  Moving up the value chain .

PSPD Model Producti vity Derris king PSPD Model Sustaina bility Profitabi lity 26 3/30/2014 .

Creativity and Innovation Barriers  Lack of Motivation and lack of trust  Lack of acceptance and tolerance of criticism in the conflict.  Conservatism and authoritarian management 27 3/30/2014 .

Infosys creative thinking strategies  Re-engineering of organizational culture  Creative education and cultural cooperation  Review proposals and re-engineering  Appreciation of the creative staff 28 3/30/2014 .

Infosys Leadership Model •Strategic Leadership •Establish and commit to a long range course actionto accomplish a long-range goal or vision that sustainably gives Infosys an edge. productivity and quality. Institutionalizing a culture of achievement. proactive prevention of defects. •Change/Adversity Leadership •Operational Leadership 29 . process innovation and improvement in order to realize goals around delighting customers consistently are also 3/30/2014 crucial. Continually creating new differentiators and challenging assumptions made about current strategies in order to persistently move ahead of competition. Manage through the inevitable sources of resistance that comes with transformational leadership Devise change strategy Create processes and systems that mitigate the risk of adoption of new innovation •Leading operations involves systematically applying a portfolio of methods that achieve high degrees of efficiency.

and retain highly capable individuals to build the leadership pipeline •Create an effective work climate to drive performance and requisite learning •Develop. 3/30/2014 Relationship/Networkin g leadership Content leadership 30 . Content leadership is about possessing and creating knowledge and mental models in your core discipline to outthink the competition. develop. maintain. and manage the performance of a team capable of executing the vision •Attract. 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. develop.Talent Leadership •Select.

31 3/30/2014 . models and working arrangements in new markets. new product segments and services to drive growth.Entrepreneurial leadership Incubate new business ideas.

Nine pillars of Infosys values System process learning Feedback Developmental Relationships Leadership skill training Infosys culture workshop Developme nt assignments 360 Degre e Feedb ack 32 3/30/2014 .

Organization Architecture Shared values Staff style Structure systems 3/30/2014 33 .

 Lack of relationship between the top and middle management 34 3/30/2014 .  There is a major problem considered in regard with the top management running the organization.Major Area Of Deficiencies  Infosys is facing a major deficiencies on the structure of the organization.  There is mismatch of the speed in the work progress between the top and lower level peers employees.

 Secondly the major deficiencies identified are on the style of working in the organization. 35 3/30/2014 .  Lack of infrastructure management.  Employee rating are often biased on the company performance and the strategic decision taken on the past.

. 36 3/30/2014 .  Infosys strategy cement the future of the business while hurting the performance today. Lack of balance between scaling up the existing operation while selling the future vision of the company.

Infosys Structure 37 3/30/2014 .

 Employee are dissatisfied with the pace of work with the top level management which is leading to the dissatisfaction of the employees.Employee Dissatisfaction  Peer to Peer communication is lacking which is leading to a time consuming process in the strategy.  Employee performance are measured on the company performance of the strategy which causes slack in the energy of the employees 38 3/30/2014 .

This is hindered the strategy in new IT landscape. 39 3/30/2014 .  Loosing out traditional strength while dealing with large clients have mismatched in dealing with a growing client base. Infosys is reluctant to new acquisitions which has lead to a crisis and establishing themselves in the foreign market.

 Flexible pricing system of Infosys have hindered in the operational profitability of the business.  Lack of spending on sales and marketing have created in the lack of reach of the product and the competitors have over performed by 8 to 16 % 40 3/30/2014 .Competition  Lack of devotion to profitability has caused a major deficiency in the competition in relatively modest firms.

 Lack of aggression have caused deficiencies in the style of

working of the organization.
 The top management pace of work is respectively low with

that of the employees.
 Lack of clarity have caused problem in the shared value

system of team orientation.

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Design a strategically aligned organizational model of your company

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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

 Managers of each IBU were empowered to take decisions to further the IBU’s prospects and within each IBU  the project matrix structure was carried forward.Changes in structure  Decentralization  They can divided into IBU’s (India Business Units). Decentralized system with an ability to take quick decisions . each IBU concentrated on a particular sector and this made the company more customer-focused.

. Multi-Compliance Capability: CCM supports compliance with multiple regulations thereby ensuring controls are tested only once. Reduced Audit Cost: Auditors place greater reliance on automated testing and reduce effort on substantive testing.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. Increased Frequency of Audit: CCM enables more frequent audit with reduced cost.

So they put lot of attentions towards their assets. merit par & skilled based pay.CHANGES IN STYLE  recognizes the importance of staffing. ESOP options Reward system for overtime pay. . the value of       its human resource. They have:Long working hours High variable salary Stiff dress code policy Low package than industrial average.

contin…..  A virtual organization has parts of the organization in different physical locations  Computer networks and communications technology are used to work on projects 47 3/30/2014 .

Describe exactly how things will function differently to increase one or more capabilities .

 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.Continue….  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 .

Diagnosing organization’s capabilities 51 3/30/2014 .

 There is a need for change.change must not be imposed upon the people.  Change must involve the people . 52 3/30/2014 .  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.  The manager has a responsibility to facilitate and enable change. Employee dissatisfaction.

Political Stability: Indian political structure is considered stable enough and Govt. of India has set up a National Task Force on IT and software development to examine the feasibility of strengthening the industry.T works to other locations other than U. Terrorist attack or war. Positive Politica l Negativ e Positive Negativ e 3/30/2014 53 .PESTEL analysis 1. 4.The Environment of Infosys  Environmental scanning - External environment . U. 3.S government declaration that U.S will not get tax benefit. Government owned companies and PSUs have decided to give more IT projects to Indian companies.S companies that will outsource I. 2.

S recession in 2008-2009. 4. Real Estate Prices: Decline in real estate prices has resulted in reduction of rental expenditure. Domestic IT Spending (Demand): The Indian domestic market will grow by 12. 6.Economi c 1. 5. 3. Economic Attractiveness due to cost advantage and other factors. Global IT Spending (Demand) from USA will increase in FY 2010. Currency Fluctuation. Attrition: After U. Positive Positive Negativ e Positive Negativ e Positive 54 3/30/2014 . companies are on a hiring spree and there is a revival of the job market.9 percent through 2013. 2. attrition rate is going to be high in 2010.

55 3/30/2014 .

Social 1. over 1. Language Spoken: India has the second largest English-speaking scientific professionals in the world. Working age population Highly Positive Highly Positive Positive 56 3/30/2014 .832 educational institutions and polytechnics. Education: It is estimated that India has over 4 million technical workers. 2. 3.785 computer software professionals every year. English medium being the most accepted medium of education. second only to the U. Thus India boasts of large English speaking population.S. which train more than 67.

Working population as a percentage of total population 57 3/30/2014 .

0.50% e. Web 2. Internet Backbone: Due to IT revolution of 90’s.Technologi cal 1. Wi-max and VPN are poised to grow. India has the world’s lowest call rates b. Enterprise telephone services. High definition content. Indian cities and India is well connected with undersea optical cables. 3G. Expected to have total subscriber base of about 800 million by 2015. grid computing etc and innovation in low cost technologies is presenting new challenges and opportunities for Indian IT industry. India has the second largest telephone network after china. Telephony: a. c. New IT Technologies: Technologies like SOA. 3. d. 2. Teledensity of India is 49. Highly Positive Positive Positive 58 3/30/2014 .

Environmen tal Energy efficient processes and equipments: Companies are focusing on reducing the carbon footprints. energy utilization. etc. Positive 59 3/30/2014 . water consumption.

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. which is not legally required. 4. Contract / Bond requirements: Huge debates surrounding the bonds under which the employees are required to work. 3. IT Act: Indian government is strengthening the IT act. 2. 2000 to provide a sound legal environment for companies to operate especially related to security of data in transmission and storage. etc.Legal 1. Positive Negativ e Positive Negativ e 60 3/30/2014 . Companies operating in Software Technology Park (STPI) scheme was getting tax-benefit till 2010.

Innovation and leadership. Status as an employer of choice in 2004.Internal Environment. Commitment to superior quality and process execution. It has proven “Global Delivery Model”.SWOT Analysis  Strengths:  Leadership in sophisticated solutions that enable       61 clients to optimize the efficiency of their business. (GDM). Strong Brand and long term client relationship. 3/30/2014 . Ability to scale up.

Only 1. Only 1% revenue from India. Low R&D spending as compared to other global IT companies. 3/30/2014 . Low expertise in high end consultancy and KPO.. Weakness:  Excessive dependence on US for revenues –       62 67% revenue from USA Excessive dependence on BFSI sectors for revenues. Low compensation packages.3% of total revenue. Weak player in Indian market. Infosys faces the highest attrition rate of 16% in the Indian software industry.

Latin America. Opportunities:  Domestic market to grow by 20%. which gives Infosys a profitable and strategic SAP customer base. BPO. Aggressive strategy of expansion of ADMs. KPO and package implementation capabilities. and software products into emerging markets. Expanding into new      63 geographies like Europe. It acquired Zurich-based Lodestone Management Consultancy. 3/30/2014 telecom and health care. Opening new offices and development centres in cost advantage countries such as Latin America and Eastern Europe. . China etc. Middle East. Diversification into new areas such as aviation. Cash Rich (around USD 1 Billion) Acquiring companies to increase expertise in consultancy.

pricing pressure in India and abroad.  Indian currency fluctuation. Threats:  The economic pressure. fixed time frame projects on time. 64 3/30/2014 .  Intense competition in market for technology services could affect cost advantage. So the company needs to shift to Time and Money kind of projects.  Failure to complete fixed priced. rising wage.

Snow Card Technique  The Snow Card Technique is a means by which ideas are filed into clusters of similarity.  Clusters are then identified as categories which are sorted in some meaningful manner. 65 3/30/2014 .  The diverse ideas of a group of contributors can be aligned in ways that represent the overall group notions and agreements for particular issues.

3/30/2014 66 . and remove redundancies. Participants choose a handful of their best answers and write them. Participants. The facilitator takes all cards and attaches them to a board or wall in clusters of similarity.Process  Participants are faced with questions and write     down possible answers on a sheet of paper. one each. The group chooses a category name to represent each cluster and the facilitator labels them as such. are given the chance to rearrange cards. as a group. on large white cards. refine categories.

67 3/30/2014 . order the clusters in some meaningful 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. As a group.

modern techniques.  Performance Appraisal -360 degree.Improve capabilities  Reward system – compensation package not up to industry average – performance based reward . spot reward.  Employee Retention Programs. 68 3/30/2014 . coaching .employee engagement.mentoring. MBO . flexible working hours.

create more control while creating IBU’s. Monitoring the tasks undertaken to implement the strategies. and how will you spend your time?  Being the GM first duty is to make sure that strategies      69 implemented are executed with out fail. particularly your leadership of the organization. Leadership by aligning personal and organizational goal.If you are the general manager what are the implications for your own role. Keep an eye on the existing employees morale during terminations. 3/30/2014 . Effectively look after people management.

.  Proper time keeping.  Motion study.  Over time work assessment. 70 3/30/2014 .  Play a vital role in employee skill development.Cont.  Monitor the decentralized approach.  Control the cost incurred in frequent audits..

3/30/2014 . Post change feed backs and follow ups. Preparing the environment prior to change. Finding out ways to improve employee satisfaction Suggesting proper appraisal system Could help the boss to create a continuous learning organization. Analyzing their view towards the change.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       71 the present problems.

Plan in concrete terms the first step you plan to take when you return to your organization to begin the change process .  Freezing process.  trimming the number of senior employees and subcontractors will lead to employee dissatisfaction.  The change in structure can effect the flaw of the organization.  It could increase the cost. 72 3/30/2014 . what are the personal and organizational risk?  Preparing both internal and external environment for change is the first and foremost challenge.

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