35914427 infosys consulting case analysis ici
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Group 2Amol Deherkar 040/46Ankit Sukhija 052/46
Madhan Darwin 168/46
INFOSYS CONSULTING
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Overview of IT Services Industry Early 1990s: BPO Work in India; largely
conducted by captive units of AmericanCompanies (GE etc.)
Late 1990s: Expansion of Indian IT companieslike Infosys by adding service lines. Leverage thebenefits of offshoring
2000s: Growth of Indian IT Services cos. Andexpansion of global firms in India
Predominant model: Global Delivery; demand forend-to-end services (business consulting, app.Development etc.)
Two different approaches: onshore US firms
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ICI Consulting Model
Mission and Objective:
Help clients become more competitive
Delivering high-quality business consulting and
disciplined technology implementation atextremely competitive price
Help develop their employees into great leaders
Partners committed to changing the rules of
the game within the consulting industry
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Creating a different model The 1-1-3 Global Delivery Model
- 1 ICI onsite resource, 1 Infosys Tech onsite + 3Infosys Tech offsite resources
- Integration of business consulting andtechnology implementation lifecycle
- Training and knowledge of global delivery ofInfosys Technologys onsite resource, a key
differentiating factorfrom competitorsapproaches
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Different Model Shortening the lifecycle of Solution Design to
Implementation:
- Different approach to implementing technology foroperational improvements
- Looked at process requirements rather thanfunctional
- Better identification of inefficiencies
- Real-time development by synergizing onsite andoffshore teams for design and s/w configuration
Cost Reduction:
- Blended rate of$100 per hourVs. $175-225 for
IBM etc
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Different Model Delivering Measurable Benefits:
- CMM Level 5 rating; exceeded highest qualitylevel by a factor of 20
- Focus on achieving measurable improvementsin business process metrics of the client
- Structured value-based deals with clients:fees owed to the company contingent on project
outcomes- Internal metrics to track the quality of workperformed by using elaborate client feedbackmechanism
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Different Model Building a unique culture
- Tradeoff between the confident, assertivebusiness advice consultant and the Infosys value
system of delivering with a sense of humility
Creating a differentiated approach
- Focus on transparency and meritocracy
- Staffing model: responsibility with individuals;
reverse auctioning model- Staff nominations for promotion
- Bonus structure based on overall client valuecreated
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Interpretive Scheme Shades of both (especially HRM systems), but
overall structure more towards MPB type
External ownership (subsidiary of a corporateentity)
Consulting approach: services related to aparticular product (Business/IT consulting, andNot Mgmt consulting)
Org Structure: High Leverage ratio (about 19) Decision-making: more directive than
consensual
Administrative tasks: No hint of partners
sharing; possibility of dedicated staff
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Relationship with Infosys Tech. Wholly owned US subsidiary
Autonomy to create its own culture, recruitmentstrategy, organizational structure andcompensation packages
Metrics established to measure the interface
Leveraged parent company to get clientengagements
ICI included in service offerings of Infosys Tech. One Infy program to enhance cultural
integration mechanisms like forums foremployees to meet/learn
Improving internal collaborative mechanisms so
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Relationship with Infosys Tech. Initial tensions in the company on who would lead
the client relationshipresolved by The Fork inthe Road methodology
Allocation to the area that best served theclients situation
ICI also brought in new clients for Infosys Tech.
Active intervention by the senior management
of Infosys to review subsidiarys performance Relationship with ICI seen by Infosys as an
opportunity to transform culture and build aglobal brand over time
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HRM Systems Shades of both P2 & MPB Arch types P2 Features
Focus on broad level of generic Skills
Selection based on Personal interactions similar toP2 firms
One Infy similar to One Firm Concept
Project Staffing : On demand by Employees
MPB Features Outcome based performance Matrix
Some standardization of Processes offerings
Major ownership not with employees
Contd
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HRM Systems Combined Features
Training Method: EmphasisInterpersonal,Analytical,Managerial and Technicalskills
Cross training Firm Size :Smaller ICI Group(Elitism) with a Larger
Infosys Technologies backing
Responsibility of Hiring and Recruitment mid way
between P2 & MPB Local Hiring
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HRM Policies : Culture Key Features
Alignment with Infosys Culture of High quality
Measurement of every aspect of Performance
Maintaining a sense of Humility
Outcome
Alignment of goals with Infosys Technologies
Support for 1-1-3 delivery modelAvoiding Project Leadership Conflicts with the
technlogy organization (Fork in the Road)
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HRM Policies : Recruitment Key Features
Top 10% Talent in lateral hiring
Recruiting from Infosys technologies
Diversity & Local Presence
Outcomes
Shortened Lifecycle of Solutions design toImplementation
Onsite Support
Cost Reduction
Supports the Global Delivery Model
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HRM Policies : PerformanceReview Key features
Individuals bid for projects and set the goals
Measurement of attainment of the targets and ClientSatisfaction
Peer Review Managing Work life balance
Outcomes
Improvement in Quality of Output
Value delivered to the shareholders of the Client
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HRM Policies : Compensation Key Features
Employed paid at higher end of Market rates
Bonus Structure linked to delivery of Client Values
Infosys Sales teams incentivized on ICI Business
Outcomes
Attracting top talent
Customer focused Evaluations Enables getting repeat business from existing
clients of Infosys technologies
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RecommendationsAggressive Hiring :
The ratio of 200/50000 employees of ICI/ITL is stillpretty low
Huge potential with large base of loyal ITL Clients
Focus on Indian Markets
Huge Potential in the Market
Understanding cultural context essential forConsulting: With large number of Indians asemployees this would be easier
Sales process can be easier
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Recommendations ICI Branding
Value focus vs. Cost focus
should set POD from Infosys Technologies (ITL)
Senior Consultants as Account Managers
Senior Consultants should be aligned to ITLaccounts to identify new business opportunities
Performance measurement not only on deliverablesbut acquired business
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Thank You !!!
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