Infosys

Infosys 3.0 : Building Tomorrow’s Enterprise

Group 8

Dhiraj Bonda (1301-067)

Oli Ghosh (1301-144)

Sounak Basu (1301-221)

Jai Shankar Rai (1301-348)

Praveen Shrivastava (1301-386)

Poornima Sharma (1301-548)

WHY LEADERS QUIT?

Business Consulting, Technology services and Outsourcing solutions

headquartered at Bangalore

Founded in 1981 by Mr. N R Narayana Murthy and six engineers in Pune

with an initial capital of Rs.10,000

73 offices and more than 160,000 employees, 798 clients across 30 countries

Revenue of US $7 billion (as on March 2013)

Infosys BPO Ltd. founded in April 2002 is the business process outsourcing

division of Infosys. Employs nearly 23,000 people in various countries

across the world like Eastern Europe, Latin America, china, Philippines

and India

Fifteen 100 million dollar clients, with 85 percent of revenue from NAM

and Europe

Ranked 19th amongst the world’s most innovative companies by Forbes

About Infosys:

Acquisitions Post Millennium

2003 Australia based IT service provider Expert Information Services for $23 million

2009 Infosys BPO acquired Atlanta based McCamish systems for about $38 million

2012 Australia based Portland group which provides category management services

for $37 million

Switzerland based Lodestone management consulting firm for $350 million

Gave access to around 200 clients across manufacturing, automotive and life

sciences verticals

Prominent Executive Leadership

Mr. N. R. Narayana Murthy, Founder, Executive Chairman of the Board

Mr. S. Gopalakrishnan, Co-founder, Executive Vice Chairman

Mr. S. D. Shibulal, Co-founder, CEO, Board Member, Managing Director

Ms. Nandita Gurjar, Senior Vice President Group Head of Education and

Research Member, Executive Council

Mr. Srikantan Moorthy, Senior Vice President, Group Head of Human

Resource Development Member, Executive Council

Recent Performance Highlights:

FY2013-14 Q2 Revenue Rs.12,965.00 crores

Nearly 98 percent of the revenue comes

from the existing clients as on Q2 FY14

Q2 Attrition at 17.30% highest in at least 2 years

Employee strength : 193,148

Utilization Rate: 77.80% ex-trainees,

73.70% including-trainees

Sales per employee: 671,247

Higher attrition rate is generally viewed as a sign of dissatisfied employees leaving the

company

BFSI34%

Retail24%

Telecom8%

Manufacturing

23%

Others11%

Q2 Revenue

Talent Acquisition

On-campus recruitment: Engineering graduates, Management graduates

Off-campus

Walk-in Interviews, Employee Referral

Job fair, Online Job Portals

Social Media

Training & Development

Largest Corporate Technical University in Asia

23 weeks foundation program for fresh engineering graduates includes generic

online learning program and specific technology

World class Facility located in Mysore

A corporate training team is formed for training lateral hires:

Band B, Band C & Above

Knowledge Management systems & Professional Certifications

Instep, Campus Connect

Infosys Leadership Institute

Set up in 2001

Completely owned by Infosys top management executives

Internal Synergy Model

9 pillars of Leadership Institute

Holistic approach in 360 degrees Feedback systems

Personality Development Assignments

Infosys Culture Workshops

Strategy Networking Skills Development

Leadership skills Training and Assignments

Systemic Process Learning and Development

Exercise Learning

Feedback Intensive Programs

Social Community Empathy

Building Tomorrow’s Enterprise

Infosys 1.0: Global Delivery Model

Infosys 2.0: GDM in all verticals

Infosys 3.0: Tomorrow’s enterprise with emerging technologies mobility – mobile

applications & platforms, Social & Big Data & Data Analytics applications and

Cloud Computing services

Problems

A. Slower revenue Growth

B. Issues in Leadership

Company CEO Mr. S D Shibulal faced tough questions from Mr. N R Narayana

Murthy in the recent annual strategy meet

Approval Rating – conducted by Glassdoor, website that lets employees vote on

their CEOs

Mr. Shibulal 51 percent - Infosys

Mr. Chandrashekaran 88 percent - TCS

Mr. Francisco D’Souza 92 percent - Cognizant Technologies

Mr. TK Kurien 78 percent - Wipro Technologies

Mr. Anant Gupta 68 percent - HCL Technologies

C. Lack of Aggression

Stream of Exits at the Top

Mr. Subhash Dhar Head of Sales and Marketing

Mr. Ashok Vemuri Board Member, head of Americas & global head of manufacturing

and engineering services resigns to join as CEO of iGATE

Mr. Mohandas pai board member and HR Director

Mr. Sudhir Chaturvedi Head of Financial Services US

Mr. Basad Pradhan Head of Global Sales Operations

Mr. Humberto Andrade, head of Latin America BPO operations

Mr. Stephen Pratt, executive council member and head of utilities &

resources for North America

Mr. Paul Gottsegen, vice-president & chief marketing officer, resigns to join

Mindtree as chief marketing & strategy officer

Mr. Subrahmanyam Goparaju, 25-year veteran, senior V-P, head of Infosys

Labs & executive council member

Mr. V Balakrishnan, board member, head of Infosys BPO, Finacle, and

India Business Unit & chairman of Infosys Lodestone

Reasons

Infosys losing ground in core markets

Transitional stage steered by Mr. N. R. Narayana Murthy

Lack of Clarity in the strategic direction

Exits triggering a wrong message leading to mid and low level employees exit from

the company

Uncertainty at the top management and lackluster results

Current Primary Focus

Improving margins, getting large deals, investing in improving investor and

employee confidence

Most stakeholders remain unconcerned due to the company’s focus on entering a

crucial phase

Mr. Murthy’s focus on “Meritocracy”

Strength of 500 employees and professional Managers in Tier I,II and III levels can

be trained Leaders.

Recommendations

Leadership should be a mix of both professional managers and founders family

members (all four CEOs till now have been from the 7 engineers who founded the

group)

Strategy is always a Long term and would take 3-5 years to show results, should be

aggressive in making large deals, cutting costs improve margins, acquisitions to get

access to specific industry in geographies which synchronize with the company’s 3.0

strategy

Top management in the Company is reasonably wealthy and their purpose to work

should not be diluted

Using Infosys Leadership Institute to train and develop the existing Professional

managers into Leaders, expansion of Executive council

Imparting Leadership skills into every Infoscian by developing tailored programs

into the regular training and development systems

Increasing the budget for S&M as current 4.8 percent of revenue is very low when

compared to peers average of around 13 percent