Infosys Consulting in 2006

Abhishek, Anshuman, Ashish Sinha, Binand, Gautam, Manish, Niren, Praveen, Rajul, Surjendu

Abhishek.

HOW IS INFOSYS PLACED IN GLOBAL IT SERVICES INDUSTRY IN 2006?

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IT Services are driven to low cost

High buyer power
Commoditized technology, many providers, dependency on large firms

Low supplier power

Many resources available at low cost

Moderate threat of new entrants

Difficult to copy brand value

Low threat of substitute

No substitute

High competitive rivalry

Fragmented market, many players, not much differentiation, moderate switching cost
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Business Consulting has higher power

Medium buyer power
Established providers, dependency upon client brands

Medium supplier power

Higher skills required which are low in supply

Low threat of new entrants

Difficult to copy brand and culture, High entry barrier

Low substitute
No substitute

High competitive rivalry

Many players but high switching cost
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Where is Infosys Technologies?

Biggest global players : IBM and Accenture Value chain
BIZ CONSULTING
Onshore IBM / Accenture Infy / TCS

APP DEV & MAINT

IMPLEMEN

INFRA MGT

BPO Offshore

Expertise Experience Procedure

US companies are moving down the value chain Indian companies are trying to move up
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Where is Infosys Technologies?

1999 IBM Accenture Infosys Wipro 2003 5000 3700 Employees 2004 2005 11000 25000 2006 110000 126000 52700 2007

78000

IBM Sales($Billion) Accenture Infosys IBM Rev/employee Accenture ($M per Emp) Infosys

91.1 17.09 1.592

97.841 18.355 1.710 0.890 0.146 0.032

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Where is ICI in Infy?

Business Consulting

Infosys Consulting Inc.

SI

Infosys Technologies Limited

ADM

ITES

Infosys BPO
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What is ICIs Value Proposition?

Parameter
Delivery model

Description
Global Delivery Model (of Infosys) 1-1-3 configuration 24 hour project work day

Differentiating value
Right mix of business and technology consultants Lower blended rate Shortened implementation time Minimum deviation from design to implementation

Performance

Metrics to measure business process improvement from the engagement

Measurable benefits Value based case fee

Thus GDM Offers

Reduced cost as offsite resources in India
Increased delivery time through 24 hours op. Measurable benefits of deliverables

Manish

WHY INTO CONSULTING? WHY ON ITS OWN?

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Why Infy into Consulting?

Repeat business could provide higher revenue
Fill gaps in offerings

Existing relationships became complex

Address new opportunities of clients Richer client relations: One-point solution

Global service market in 2004: 550 $B

Huge opportunity as TCS+Wipro+Infy had .8% only

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Why on its Own?

To develop its own brand
Subcontract could dilute it Joint ventures have limited life & Validity
Overlap of activities & Conflict of interests

To leverage the Global Delivery Model (GDM)

Causing further disruption to consulting New model can not be setup through acquisition

Transform Culture & Build Brand as global transformation enabler

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How Is Infy Moving in Consulting?

Value

IBM

Cost Infosys

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INTERFACES BETWEEN ITL & ICI WHAT ARE THE CHALLENGES?

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Objective: Seamless Integration

Mirror ITL (industry-wise organized) Coordination driven by metrics
Each BU has specific goal for ICI ICI has specific revenue goals for ITL

Collaboration driven by One Infy culture

Incentives & rewards, cross-business training, cultural integration, Forum One company to customer

Evolution - Constant redefinition and learning Adapt ITL sales process to include ICI services Fork in the road: Ownership & Accountability
Job allocation: Transformation (ICI) & Technology (ICT)

Performance management of ICI by Sr. Executives of ICT

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Challenges: Seamless Integration

Business Integration
Where to draw line between business and technology consulting? How to utilize common sales force?

Culture Integration
ICI formed by a team of outsiders Different people: Foreigners in ICI vs Indians in ICT

Single view to customer

Mechanism for revenue sharing on same account Who would be the key contact - ITL or ICI?

1-1-3 model and its efficiency

Can it be leveraged everywhere?
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Rajul

INFY AND ITS COMPETITORS

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Infys Competitors Are Strong

Infys strategy includes
Integration of management & IT consulting Increase in cross-selling Cost-effectiveness

Should IBM and Accenture feel threatened by ICI?

Already have integrated services ICI is small player in consulting
Is it a big concern as of now?

It takes long to establish in business consulting

Should they also go for low cost model?

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GDM can not be extended

Business consulting is expertise oriented
GDM works well for procedural and experiential activities. IT has been commoditized.

Business consulting is people oriented

Face to face interaction has more importance 3-3-1 model may be needed, not 1-1-3!

Business consulting is thinking oriented

Gaps of silence needed. 24 hours continuity may not add any significant value.
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How Can Competitors Respond?

Increase the value proposition higher
Decrease buyer power and increase competition

Integrate management and IT consulting further

Remove complexities in integration Same impact as above

Need not try to replicate 1-1-3 model everywhere

GDM good for low end IT Consulting May not work for critical high end business consulting

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What Should ICI do post 2006?

Expand global reach (revenue, market share)
Financial support is available

Deliver higher Value and Communicate

Look beyond GDM

Get the best talent Integrate ICI and ITL and have better interface Build the brand
Not many know ICI in business consulting Infosys is still known as an IT services company
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Thank You!

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