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Simple Infosys Restructuring Analysis

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  • Software programmers were able to leverage past experience most effectively if they concentratedon one industry. To achieve these economies of experience, the primary organizational constructwithin Infosys was the industry business unit (IBU).
  • It increases its recurring business with clients by providing software re-engineering, maintenance, infrastructure management and business process management services which are long-term in nature and require frequent client contact. Plans to increase presence in China through Infosys China, in the Czech Republic and Eastern Europe directly and through Infosys BPO, in Australia through Infosys Australia and in Latin America, through Infosys Mexico. Infosys has specialized industry expertise in the financial services, manufacturing, telecommunications, retail,transportation and logistics industries.
  • C-LIFE:Customer Delight: A commitment to surpassing customer expectations. Leadership by Example: A commitment to set standards in business and transactionsIntegrity and Transparency: A commitment to be ethical, sincere and open in our dealings.Fairness: A commitment to be objective and transaction-oriented, thereby earning trust and respect.Pursuit of Excellence: A commitment to strive relentlessly, to constantly improve ourselves, our teams, our services and products so as to become the best
  • Just 1 year,Sub-prime crisis hit business badly
  • Transcript

    • 1. The case ofInfosys Restructuring
      Raghunath Ganti
      3/17/2010
      ODC Grp 9: Infosys Restructuring
      1
      Sec A Group 9
    • 2. The Questions Posed
      Use McKinsey’s 7S framework to analyze Infosys
      Identify Weakness of Infosys and analyze the changes made in the given context and comment on its effectiveness in leveraging the strengths and addressing the weakness.
      3/17/2010
      Grp 9 ODC: Infosys Restructuring
      2
    • 3. About Infosys - Essentials
      2nd largest Indian IT firm with over 1 Lakh employees
      Global footprint, offices in multiple countries
      Pioneered the Global Delivery Model (GDM)
      GDM principle of taking work to the location with
      best talent,
      best economic sense,
      least amount of acceptable risk.
      3/17/2010
      Grp 9 ODC: Infosys Restructuring
      3
    • 4. Core Strategies
      GDM
      Moving up the Value Chain
      PSPD Model
      Predictability of Revenues,
      Sustainability of Revenues,
      Profitability,
      De-risking.
      3/17/2010
      Grp 9 ODC: Infosys Restructuring
      4
    • 5. Organization Structure:Concept of IBU and its Success
      Primarily a s/w dev & maintenance company
      Programmers leverage past experience most effectively when concentrated on one industry.
      Industry Business Unit concept
      Structure featured a large no. of small business units,
      IBU was effectively a separate company in itself
      3/17/2010
      Grp 9 ODC: Infosys Restructuring
      5
    • 6. Q1: The 7S: Strategies
      3/17/2010
      Grp 9 ODC: Infosys Restructuring
      6
      Client-focused strategy to achieve growth
      Focuses on limited number of large organizations
      Rather than focusing on numerous small organizations
      Commands premium margins
      Some time prefers to walk-out rather than compromise
      Increase business from existing and new clients
      Expand geographically
      Develop deep industry knowledge
    • 7. Q1: The 7S: Staff (HR)
      3/17/2010
      Grp 9 ODC: Infosys Restructuring
      7
      Knowledge-based industry, so Human capital important
      Emphasis on selecting right candidates
      Spends about 2.65 per cent of its revenues on up gradation of employees’ skills,
    • 8. Q1: The 7S: Style (Leadership)
      3/17/2010
      Grp 9 ODC: Infosys Restructuring
      8
      Leadership is based on high business vision and predominantly supportive styles.
      Emphasis on developing leadership qualities: ILI
      Open door policy, continuous sharing of information
    • 9. Q1: The 7S: Skills
      3/17/2010
      Grp 9 ODC: Infosys Restructuring
      9
      Focus on continuous skills improvements
      Mandatory certifications for domain and technology
      Projects at CMMi level
      Knowledge Management given special focus
    • 10. Q1: The 7S: Other S
      Structure
      IBU
      Free form organization
      Shared Values
      C-LIFE
      Systems
      3/17/2010
      Grp 9 ODC: Infosys Restructuring
      10
    • 11. Q2: Weaknesses
      3/17/2010
      Grp 9 ODC: Infosys Restructuring
      11
      Excessive dependence on US for revenues
      Excessive dependence on BFSI sector for revenues
      Weak player in domestic markets
      Low R&D spending compared to global IT firms
      Low expertise in high end services like Consultancy
    • 12. Drivers for Change
      3/17/2010
      Grp 9 ODC: Infosys Restructuring
      12
      Growth opportunities in non-US.
      India, Europe, Asia and other parts of the world
      The need to move into in the high value add segment like Design, Consulting
    • 13. Current Structure: Problems
      3/17/2010
      Grp 9 ODC: Infosys Restructuring
      13
      Lack of expertise in dealing with the European markets
      Unable to capture the domestic Indian market.
      Lack of large IP ownership necessary to be able to capture the markets in the Southeast Asia
    • 14. Highlights of the Changes Made
      3/17/2010
      Grp 9 ODC: Infosys Restructuring
      14
    • 15. Q2: Judging the effectiveness
      3/17/2010
      Grp 9 ODC: Infosys Restructuring
      15
      Too premature to judge
      Actual Views
      Clear focus on US and non US markets helpful
      Consulting being given more importance with middle level managers being made part of it
      Specialized training for Europe market – Language, Culture
    • 16. Thankyou.
      Questions…
      ?
      3/17/2010
      Grp 9 ODC: Infosys Restructuring
      16

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