HitTeam

Gurbaneet Sethi 10FN044Jitesh Anand 10IB033

Kapil Malhotra 10FN051Sidhi Agarwal 10FN107Prashant Misra 10IT019Karan Razdan 10FN052

InfosysThe Challenge of Global Branding

Infosys faces the challenge of global branding in the wake of intense competition from global players like IBM &

Accenture.

We examine the global delivery model (GDM) of Infosys Technologies.

• How Infosys uses GDM as a strategic outsourcing tool. • The operational aspects of GDM and its benefits to Infosys.• The challenges faced by the company from foreign and Indian

software companies.

Abstract

• Started by seven professionals, spearheaded by Mr. Narayana Murthy in 1981 with $250 and a dream.

• Grew from being a developer of software programs to being a solution provider for business problems.

• Top software exporter of India.

Company Info

• Revenues of $12.5 billion in 2003.

• 97% of its revenues are generated through software exports.

• 85% of its business from was from repeat customers; showed high customer loyalty and satisfaction.

Vital Statistics

Infosys: Through the years

• Should they go towards becoming an end-to-end IT/BPO provider in various verticals through development & acquisition of world-class high-end IT consulting services using GDM?

• Or, focus using the GDM to hone distinctive competencies by undertaking penetration of additional industry sectors?

Challenges faced

• Or, focus using the GDM to hone distinctive competencies by undertaking penetration of additional industry sectors?

• How to highlight the uniqueness of the company, while their competitors were using similar cost and human resources advantages?

• What should be the core positioning strategy for Infosys to enable a global identity for continued growth?

Challenges faced

Services Offered

• Application Development and maintenance

• Corporate performance management

• Enterprise quality services

• Infrastructure services

• Packaged application services

• Product engineering

• Systems Integration

• Aerospace & defence• Automotive• Banking• Communication• Consumer goods• Manufacturing• Energy• Healthcare• Hospitality

• Insurance• Life Sciences• Media &

Entertainment• Resources• Retail• Transportation• Utilities• High technology

Industries being served

Glo

bal D

eliv

ery

Mod

el

Analyse the operational aspects of GDM

Analyse how GDM emerged as a source of competitive advantage

Factors contributing to the success of GDM

A few disadvantages of the model

Working Model @ Infosys

• Most important strategic initiative.

• Refers to philosophy of breaking work into logical components and assigning it across geographical locations so as to create maximum value.

• A Project is divided into modules which are then sent to off-shore locations where majority of work is done.

Global Delivery Model

• These modules are then joined together at client location.

• Leads to high time and cost predictability.

• Allows you to invest more time and cost in design phase or in pilot projects.

Global Delivery Model

• Knowledge capture.• Quality control.• Continuous improvement.• Distribution of staff between onsite & offsite

locations.• Employees at client location have better

understanding of requirements.• Accelerates schedule.

Competitive Advantage

• Access to a large pool of highly talented professionals.

• 24 hour execution capability spread across time zones.

• Expedite large projects by simultaneously processing the project components.

• Enhanced security through physical & operational separation of clients project.

• Cost competitiveness across geographic regions.• KM system through which solution can be reused.

Factors contributing to Success

• Complex to understand.

• Language constraints.

• Management & communication overheads.

Disadvantages of the model

• Presently catering to government, energy, education, manufacturing, IT & telecom.

• Lucrative verticals like insurance, telecommunications, banking & finance are registering high growth.

• Strategy of earning in dollars and spending in rupees.

• US & Europe account for 86% of global outsourcing spending.

Indian IT market

Value Proposition

Low cost high quality model

Higher service levels

Implementation of industry

standards – SEI-CMM, ISO, Six

Sigma

• In consulting business, Infosys lacked behind IBM and Accenture, hence it had to build a global brand.

• Consulting market is in its nascent stage and players can define their unique selling propositions and establish their market share.

• Infosys used its proven credibility in GDM to restructure its business in accordance with industry domains.

Developing a GLOBAL BRAND

Understand customer problems

quickly

Develop vertical domain

expertise

Create industry solutions

Implement them

quickly

Developing a GLOBAL BRAND

“Improve your oddswith

Infosys predictability”

• Infosys predictability improved the odds for customers to increase their competitiveness due to complete transparency.

• This reflected the peace of mind that Infosys delivered.

Developing a GLOBAL BRAND

• It was observed that clients outsourced BPO area more & Infosys had an edge which distinguished it from other global service providers.

• To directly compete with global giants, Infosys could pursue an aggressive acquisition policy & gain local knowledge.

• IT outsourcing and consulting went hand-in-hand to provide end-to-end solutions to its customers.

Developing a GLOBAL BRAND