INFOSYS CONSULTING IN 2006:

Leading the Next Generation of Business

and IT consulting
IT Industry Overview of the IT Services Industry:
Early 1990s: BPO work in India; largely conducted by captive American companies (GE etc.)
Late 1990s: Expansion of Indian IT companies like Infosys adding service lines. Leverage the
benefits of off-shoring
2000s: Growth of Indian IT services cos. And expansion of global firms in India
Predominant model: Global delivery; demand for end to end services (business consulting, app.
development etc.
Two different approaches: On-shore US firms leveraging offshore centers; offshore firms
offering consulting


Onshore (U.S.-Based) Leading Players:
IBM, Accenture
Offshore (Indian) Leading players: TCS,
Wipro, Infosys Technology
47% annual growth (2003 vs. 2004)
Still 0.8% market share


Fragmented Market

Value Chain:

US companies are moving down the value chain
Indian companies are trying to move up
ICI Consulting Model
Mission and Objective:
Help clients become more competitive
Delivering high quality business consulting and disciplined technology implementation at
extremely competitive price
Help develop their employees into great leaders
Partners committed to changing the rules of the game within the consulting industry
Creating a different model
The 1-1-3 Global delivery model: 1 ICI onsite resource, 1 Infosys Tech onsite, 3 Infosys Tech
offsite resources
Integration of business consulting and technology implementation lifecycle
Training and knowledge of global delivery of Infosys Technologys onsite resource, a key
differentiating factor from competitors approaches.
Shortening the lifecycle of solution Design to Implementation
Different approach to implementing technology for operational improvements
Looked at process requirements rather than functional
Better identification of inefficiencies
Real time development by synergizing onsite and offshore teams for design and
software configuration
Cost reduction : Rate of approximately $100/hour, much lower in comparison to competitors
($175-$200)
Strong competitive barrier as there are structural challenges to replicate this model. It will take
the competitors 3-5 years atleast.
Delivering Measurable Benefits:
CMM level 5 rating, exceeding the highest quality level by a factor of 20
Focus on achieving measurable improvements in business process metrics of the client
Structured value-based deals with clients: fees were based on the success of a spend
management engagement
Own set of metrics to track quality of work by taking feedback from clients
Challenges of Culture Integration:
ICI formed by a team of outsiders. Different people: foreigners in ICI vs. Indians in ICT.
Building a unique culture: Tradeoff between arrogant, confident consulting firm and Infosys
value system of delivering with humility.
Creating a differentiated approach: Focus on meritocracy and transparency; Bonus structure
based on overall client value delivered.

Relationship with Infosys Tech
Wholly owned subsidiary
Autonomy to create its own culture, organizational structure, recruitment strategy, and
compensation packages
Leveraging parent company to get client engagements
ICI included in client offerings of Infosys Tech.
The Fork in the Road methodology : pursuit of the client relationship would be
allocated to the area of the company that best served the clients situation
Interfacing: Quarterly meetings between the leaders of ICI and Infosys Tech. to ensure
knowledge exchange
Active intervention by senior management of Infosys to monitor the subsidiarys
performance

ICI: The way forward
Expand global reach in terms of revenue and market share
Look beyond GDM: Deliver higher value and communicate
Recruiting the best people: Getting the best talent
Integrate ICI and Infosys Tech. to have better interface
Building the brand: Infosys is still known as IT services company
Infosys should leverage ICI to strengthen its position in current market and prepare for further
industry transformations.