Infosys' Global Delivery Model

            
 
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Case Details:

Case Code : OPER059
Case Length : 14 Pages
Period : 1995-2006
Organization : Infosys Technologies
Pub Date : 2006
Teaching Note : Available
Countries : India/Global
Industry : Software

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.



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Excerpts Contd...

The Benefits

According to analysts, GDM was cited as one of the key factors behind the rapid growth of Infosys' revenues. In a span of 25 years, the company grew to generate revenues of US$ 2 billion in 2005-06. Infosys' revenues grew almost four-fold in the past four years (Refer Exhibit VII for five year revenues of Infosys). The company continued attracting a talented workforce in India and other countries. The number of employees of Infosys grew to 52,700 as of March 2006 against 10,700 in 2002. In the fiscal year 2005-06, Infosys derived more than 40% of its revenues through new GDM based services like package implementation, independent validation, business process management, infrastructure management and systems integration...

Operations Management Case Studies | Case Study in Management, Operations, Strategies, Marketing Management, Case Studies

The Road Ahead

Realizing the potential of GDM, several other Indian IT companies also began providing offshore services. Indian companies could charge a premium of 10-20% for their offshore services. But with these services becoming mainstream, there was competition among major players and customers became less willing to pay a premium. It was not long before multinationals also entered the fray. Several MNCs like Accenture , IBM Global Services , Electronic Data Systems , have started operating from India and began offering the same offshore rates as Indian companies.

But Infosys remained confident that consultants and companies abroad could not match their GDM capabilities. They would need to build the model from scratch, by retrenching the manpower in their countries and hire equally talented employees in other locations with cost advantages. The multinationals would need to redesign their operations in order to replicate Infosys' GDM, which would be a very difficult task...

Exhibits

Exhibit I: Magic Quadrant - Criteria

Exhibit II: Traits of Companies in 'Leaders' Quadrant

Exhibit III: Infosys - Milestones

Exhibit IV: Project Components - Onsite, Near-Site, Offshore

Exhibit V: Advantages of Global Delivery Model

Exhibit VI: Infosys - GDCs Located Outside India

Exhibit VII: Infosys - Five Year Financial Highlights (US GAAP)


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