Infosys Case Study
Infosys Case Study
Infosys Case Study
Executive summary:
This memorandum presents the teams analysis of Infosys
Consulting in 2006: Leading the next generation of Business
and Information Technology Consulting (case: SM-151 by
Stanford School of Business published on 05/16/06). Infosys
Technologies (ITL) decided to move up the value chain and
offer premium consulting services in both Business & IT
consulting domains. They chose to venture on their own and
build a company ground-up by setting up a wholly owned
subsidiary in the United States of America. Infosys
Consulting (ICI) had a distinctive Global Delivery Model
(GDM) which allowed them to deliver engagements at a
blended rate of approximately $100 while market prices
were in the range of $175-$225. By using a follow-the-sun
model through (GDM), ICI shortened the lifecycle of solution
design to implementation and brought down costs.
Leveraging ITLs core philosophy around delivering
measurable benefits to clients, ICI differentiated themselves
by providing more visibility to the clients about value-adds
resulting from the consulting engagements with ICI. ICI
invested significantly in hiring the right people, building a
unique culture for the organization and creating employee
reward structures that linked employee bonuses to the value
delivered to clients. ICI leveraged the parent companys
existing relationships to create new business opportunities.
ICI customized deal by linking their consulting fees to client
value additions and project outcomes. By creating such
value based deals that showed their willingness to put their
fees at risk, ICI won over clients confidence. ICI sought
client feedback after each engagement in which most clients
rated them as having exceeded expectations. ICI and ITL
faced several interfacing challenges amongst them. Senior
management oversight and decisions on which one of the
two entities will take up assignments that involved
overlapping client requirements posed confusions within the
organization that had to be addressed on a case-by-case
basis. ICI created disruptive changes in the consulting
industry that competitors had to respond to. It is to be
evaluated as to what ICI can do to stay ahead of the game.
Leveraging Client
Knowledge:
Relationships
and
Institutional
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Conclusion:
ICI has gotten off to a great start and has brought about
disruptive changes in the consulting space through 1-1-3
models, GDM, lowering costs, delivering metrics for
performance & value and structuring end-to-end deals.
Although these models are not very difficult to be replicated,
there is a considerable amount of time that goes in favor of
ICI before which competitors can scale up to provide these
services. A lot of what the competition does to respond to
this will also rely on how much they are willing to modify
their own core values. ICIs growth story is an incredible
success story of persistence of core values and culture to
build businesses. Their methods of replicating their success
mantras as well innovating and leading the pack at a global
scale in an industry that they have barely broken into shows
their deep-rooted application of long-term strategy that is
grounded in their culture.
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