Infosys is a global IT services company that has successfully implemented a global delivery model (GDM). GDM divides work between on-site client interaction and offshore development centers where work is performed at lower costs. This allows Infosys to complete projects more efficiently while continuing to expand globally. Since implementing GDM, Infosys has experienced rapid revenue growth and now has delivery centers across India, Europe, and other parts of the world. While GDM has been very successful for Infosys, managers should address issues like increased attrition and lack of cultural diversity training.
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1. Infosys: Global delivery Case studyGuidance by: Professor Bruce RosenthalPresented by:Taniya BhowalJessica RobertsDeepika NaphriLovneet Singh
14. Working principal of GDM is to take work to location where best talent is available at most economical cost, which makes sense and also involves less risks.GDM
15. Infosys’s GDMThe work is divided in two segments:On-siteTasks included:Client interactionGoal settingArchitecture requirementsFirst –level and facilities support.Global development centersProximity development centers(PDC)Offshore development centers
16. Infosys’s GDM cont..Proximity development centers(PDC)Tasks include:Requirement analysis and prototype buildingImplementation supportNear-site support and service redundancyOffshore development centersTasks performed:Information supportDetailed design, code development, testing and integration.Report building and extensive BPO services
18. Analyze this… The managers have done a great job, however:Increased attrition rate.
19. No cultural diversity training for the developersWe Suggest…Changes in legal documentation upon hiring.Inter cultural and inter departmental employee exchange program.
21. Since 2006…Received awards in 2007 for achieving breakthrough performance by Palladium Group.1In 2007, Infosys announced of reducing dependence on US market to sustain growth. Goal was to increase Europe share to 30% and rest of world share to 20%. Europe goal was achieved in August 2008.2In 2008 company started to bid for Axon, a UK based consultancy firm.3According to Infosys’s CFO, clients are waiting for macro-economy to become stable before long term commitment. (WSJonline.com September 11th, 2009)1.http://www.business-standard.com/india/storypage.php?tp=on&autono=306092.http://www.foxnews.com/printer_friendly_wires/2007Aug30/0,4675,IndiaUSInfosys,00.html3.http://www.businessweek.com/globalbiz/content/aug2008/gb20080827_866743.htm?campaign_id=rss_topStories
22. Revenue growth since 20062005-06 2152*2006-07 3090*2007-08 4176*2008-09 4663(till third quarter)** Source: Infosys annual report for corresponding years.