INFOSYS CONSULTING IN 2006: LEADING THE NEXT GENERATION OF BUSINESS AND INFORMATION TECHNOLOGY CONSULTING There is no doubt in my mind that five years from now, the Infosys Consulting model will be the standard way of doing things where technology development is done off-site. We are one of the fastest growing IT consulting firms in the world. Our major bottlenecks right now are convincing clients to break with old habits and take a chance on a new, better model and recruiting the right people—top tier talent who understand our innovative approach and fit into our unique culture. —Steve Pratt, CEO, Infosys Consulting.
In January 2006, the five managing partners of Infosys Consulting (ICI), also known to the leadership of ICI’s parent company Infosys Technologies as “the dream team,” congregated at the St. Regis resort in Orange County, California for their first team meeting of the year. CEO and managing director Steve Pratt, COO and managing director Paul Cole, managing director Romil Bahl, managing director and founder Raj Joshi, and managing director Ming Tsai, (see Exhibit 1 for management bios) were all proud of how much the company had achieved since its inception in April 2004 as a wholly owned U.S. subsidiary of Infosys Technologies. The firm had more than 100 consulting engagements and had grown from its inception in April 2004 to over 200 employees in January 2006, achieving its two year recruiting target. It was also on plan for both its own revenue target and its target contribution to Infosys Technologies’ revenue through the third quarter of its second year of existence. Moreover, ICI’s managing partners were confident that the subsidiary had contributed to Infosys Technologies’ ranking in Wired magazine’s Top Ten Company list in May 2005 and high ratings from analysts in 2004 and 2005 (see Exhibit 2). However, the five managing partners saw several challenges ahead for ICI. Driven by Infosys Technologies’ COO Kris Gopalakrishnan’s edict to “compete with the best,” the team aspired to be ranked alongside IBM and Accenture, leaders in the business and information technology consulting industry (see Exhibit 3 for company rankings). They also faced internal challenges of leveraging Infosys Technologies, interfacing productively with the parent company and managing growth as they built the organization. In addition, each managing partner was Aneesha Capur prepared this case under the supervision of Professor Robert A. Burgelman as the basis for class discussion rather than to illustrate either effective or ineffective handling of an administrative situation. Copyright © 2006 by the Board of Trustees of the Leland Stanford Junior University. All rights reserved. To order copies or request permission to reproduce materials, e-mail the Case Writing Office at: firstname.lastname@example.org or write: Case Writing Office, Stanford Graduate School of Business, 518 Memorial Way, Stanford University, Stanford, CA 94305-5015. No part of this publication may be reproduced, stored in a retrieval system, used in a spreadsheet, or transmitted in any form or by any means –– electronic, mechanical, photocopying, recording, or otherwise –– without the permission of the Stanford Graduate School of Business.
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committed to “changing the rules of the game within the consulting industry” in the founding partner Raj Joshi’s words. By applying Infosys Technologies’ approach to global delivery, the leadership team at ICI believed the firm had created a unique model in business and information technology consulting that shortened the lifecycle from business consulting to technology implementation, reduced the costs of a typical client engagement and delivered measurable benefits to clients.
FLASHBACK TO APRIL 2004: THE INCEPTION OF INFOSYS CONSULTING The evolution of global Information Technology (IT) service companies in India began in the 1990s with the procurement of...