The case ofInfosys Restructuring<br />Raghunath Ganti<br />3/17/2010<br />ODC Grp 9: Infosys Restructuring<br />1<br />Sec...
The Questions Posed<br />Use McKinsey’s 7S framework to analyze Infosys<br />Identify Weakness of Infosys and analyze the ...
About Infosys - Essentials<br />2nd largest Indian IT firm with over 1 Lakh employees<br />Global footprint, offices in mu...
Core Strategies<br />GDM<br />Moving up the Value Chain<br />PSPD Model <br />Predictability of Revenues, <br />Sustainabi...
Organization Structure:Concept of IBU and its Success<br />Primarily a s/w dev & maintenance company<br />Programmers leve...
Q1: The 7S: Strategies<br />3/17/2010<br />Grp 9 ODC: Infosys Restructuring<br />6<br />Client-focused strategy to achieve...
Q1: The 7S: Staff (HR) <br />3/17/2010<br />Grp 9 ODC: Infosys Restructuring<br />7<br />Knowledge-based industry, so Huma...
Q1: The 7S: Style (Leadership) <br />3/17/2010<br />Grp 9 ODC: Infosys Restructuring<br />8<br />Leadership is based on hi...
Q1: The 7S: Skills<br />3/17/2010<br />Grp 9 ODC: Infosys Restructuring<br />9<br />Focus on continuous skills improvement...
Q1: The 7S: Other S<br />Structure<br />IBU<br />Free form organization<br />Shared Values<br />C-LIFE<br />Systems<br />3...
Q2: Weaknesses<br />3/17/2010<br />Grp 9 ODC: Infosys Restructuring<br />11<br />Excessive dependence on US for revenues<b...
Drivers for Change<br />3/17/2010<br />Grp 9 ODC: Infosys Restructuring<br />12<br />Growth opportunities in non-US.<br />...
Current Structure: Problems<br />3/17/2010<br />Grp 9 ODC: Infosys Restructuring<br />13<br />Lack of expertise in dealing...
Highlights of the Changes Made<br />3/17/2010<br />Grp 9 ODC: Infosys Restructuring<br />14<br />
Q2: Judging the effectiveness<br />3/17/2010<br />Grp 9 ODC: Infosys Restructuring<br />15<br />Too premature to judge<br ...
Thankyou.<br />Questions…<br />?<br />3/17/2010<br />Grp 9 ODC: Infosys Restructuring<br />16<br />
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Simple Infosys Restructuring Analysis

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Simple Infosys Restructuring Analysis

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

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