case analysis_infosys consulting_group no. 5

8/2/2019 Case Analysis_Infosys Consulting_Group No. 5

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Presented By :

Naveen Rai (11Ex-036)Kuldeep Gupta (11Ex-059)

Kallol Sarkar (11Ex-024)Ashish Batra (11Ex-009)

Khushboo Mittal (11Ex-026)

Case Analysis : Infosys Consulting


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Introduction Infosys : Established in 1981, Infosys is a NASDAQ

listed global IT services company with more than105,000 employees. From a capital of US $ 250,Infosys have grown to become a US $ 4 billioncompany with a market capitalization of approximately

US$ 27 billion. Infosys Consulting : Infosys started its consulting

business by forming a separate arm in 2004. Earlierthis year, the company folded it up into a larger unit aspart of a restructuring. Stephen Pratt became the firstCEO and MD of Infosys Consulting.

Case Analysis : Provides the insight about the originand building process of Infosys Consulting. Itdescribes the value proposition and relationship ofInfosys Consulting with Its parent company . It alsotalks about the adopted Delivery model, Competitions

, Opportunities and challenges faced by Infosysconsultin . Finall it concludes b ro ectin the


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Origins Separation of Agilent Technologies from Hewlett-

Packard in1999, brings in a scope for DeloitteConsulting to pitch in for an engagement with Agilentto assist them in complex IT transition.

At Deloitte Consulting, two longtime friends and

colleague Mr. Pratt and Raj Joshi build a partnershipwith an Indian IT firm to serve the client - Agilent byusing Global Delivery Model (GDM).

After the success of GDM model they try to implementthe same in their own organization ( Deloitte ) but

eventually give up as the leadership team doesntshow up any interest for this mammoth change. As an alternate option they approach Infosys, but fail

to make a deal because Infosys sees Deloitte as itscompetitor.

Later, finally with a lot of persuasion and byconvincing Infosys that it could be better, faster and


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Expanding the Value Propositionat Infosys Infosys had been working on creating internal IBUs to

work independently and to expand capabilities. New Offering from Infosys Consulting was viewed as

an important improvement for Infosys business. Now, Infosys would have the opportunity to expand

its focus from the budgetary and scheduleconsideration of delivering software to total clientimpact - On Operational change, competitivenessand profitability.

Now Infosys consultant could engage in conversation

at Higher and Higher points within their clientsorganization. They would be able to tackle higher value problems

and as a result, raise their fees which in turn raiseaverage revenue productivity.

With addition of Consulting Capability, Infosystransformed from


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Developing a Vision For InfosysConsulting Infosys Consulting planned to offer strategic services

but intended to focus on serving clients that facedcomplex operational and organizational change,serving them in ways that led to tangible andmeasurable bottom-line impact.

The Infosys Consulting brand would stand for deepinsight into technology-enabled change plus a low-cost, high-quality capability to fully implement new ITsystems.

Provide services that are higher in quality and

sophistication than those of direct competitors. Building a relationship with Infosys so as to gain the

competitive advantage. With the support of InfosysGDM, establish complete accountability not just for

developing strategies and solutions, but deliveringthem end to end.


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Expectations For their $20 million investment, the leadership team

at Infosys expected quick financial results. They not only expected Infosys Consulting to grow

rapidly, they wanted evidence that it could changeInfosyss existing client relationships from tech

focused to business focused. Infosys Consulting also faced a challenge in that

Infosys was accustomed to high predictability in itsforecasts.

Every leader was expected to make his or her

operations PSPDpredictable, sustainable,profitable, and de-risked. High levels of accuracy was there because its core

business operated on long-term contracts for ongoingsoftware applications development and maintenance.

Infosys Consulting would hire only the top 10 percentof talent.


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u ng n osysConsulting

At junior levels, Infosys Consulting hired predominantlyfrom top MBA programs in the United States Eradication of the arrogance. Inclusion of Infosyss values, among them integrity,

fairness, egalitarianism, a commitment to learning, and

humility. Focus on commitment to client service. Tying of each consultants compensation to client

evaluations of the consultants performance. Limited opportunities for Infosys employees who were

involved in consulting-like activities to make a lateraltransfer into Infosys Consulting.

Adoption of a similar organizational structure like Infosys. It created vertical groups focused on specific industries

and horizontal groups focused on specific skill sets.


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Early Operations Partners took a bottom-line approach to describing

the benefits of having the company as a businesstransformation partner.

They talked early and often about the return oninvestment that could be achieved in a given project.

Encouraged clients to measure their results.

In the first few quarters, early sales successes helpedbuild Infosys Consultings credibility within Infosys.

Soon, Infosys Consulting was flooded with requestsfrom client leads within the parent company.

Infosys Consulting retrenched and prioritized, naminga finite number of target accounts and serviceofferings. The first half of 2005 was a slower period.


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GDM1-1-3 StaffingModel Standard that for every consultant involved, there werefour Infosys employees involved, of which three were

based in India. (Within Infosys Consulting, the ratio ofconsultants to partners was 10 to 1, a ratio similar to theircompetitors.)

A typical assignment started with an evaluation of clientneeds, lasted a few weeks, and involved only a fewconsultants.

Then the project would move into an implementationphase, which could involve 50 people in total, following theone-one-three model.

Just as Infosys broke down each task in softwaredevelopment, analyzing which task demanded clientinteraction and which could be accomplished overseas,Infosys Consulting analyzed each task in the consultingprocess.

It found roughly 30 percent of consulting work could be

accomplished offshore, it was substantially less than the70 ercent or more of the IT services work that could be


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Governance Mr. Pratt reported to an Infosys Consulting board of

directors. Several directors served on the boards of both Infosys

and Infosys Consulting. Infosys Consulting was also tightly integrated with the

strategic and operational planning cycles of Infosys. Measure of competitiveness between units by doing

performance comparison based on common metrics. However, Mr. Pratt was successful in persuading the

group that Infosys Consulting needed to be evaluated

differently. Infosys Consulting had been set up as a separate

legal entity, with separate management systems. The objective for Infosys Consulting was to establish

a service, not to achieve predictability.


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Building a Partnership withInfosys Persuaded Infosys client leads that there was value to bothsides in the partnership. Built a culture where in a consultant and a technical expert

get in a room together and talk through the issuesspecifically, talking through as many possible clientscenarios as possible, with facts and concerns clearlyunderstood.

Spent more time getting to know business heads/stakeholders on a personal level.

Chose the right performance measures and incentives. Infosys and Infosys Consulting were credited with

revenues for the full project, and both were heldaccountable when clients were dissatisfied with results.

There was also a system for allocating revenues betweenthe two units, but individual incentives were based oncombined revenues.


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Continued This system alleviated a natural tendency to compete forownership of certain tasks of a client engagement in order

to bulk up numbers. Infosys Consulting was experienced in managing large

consulting programs; Infosys had a deeper understandingof the global delivery model demands.

In initial sales calls, Infosys Consulting needed toreposition perceptions of Infosys as an IT service providerto Infosys as a business transformation partner.

Operational challenge in delivering work was definingwhich group was responsible for each task in a client

engagement. Through 2006, Infosys Consulting did not experience

difficulties in staffing a sufficient number of softwareengineers to the projects they sold.

Internal IBU of InfosysThe enterprise solutions groupcollaborated heavily with Infosys Consulting.


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Conclusion In 2007, Infosys Consulting had grown to 700 % as

compared from 2007.

Because Infosys has performed so well for 25 years, thereare astonishingly high expectationsnot just for outcomes,but for predictability of outcomes.

Though there were some challenges with predicting therevenues and with adaptation of GDM model withinInfosys Consulting, yet there were huge opportunitiescoming on its way which could easily change the fate of

the Infosys consulting.

Infosys Consulting was focused to hire the talent poolmore aggressively in coming days.

Inception of Infosys Consulting and Implementation ofGDM model were huge successes. These had such a

potential that it was certain it would completely transform


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Thank You !!!

case analysis_infosys consulting_group no. 5

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