Harvard Business Review -Porter Model

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Infosys Consulting (ICI) emerged from Infosys Technologies as a business and information technology consulting firm with a unique strategy. ICI applied Infosys’ Global Delivery Model (GDM) to consulting and leveraged the parent company’s client relationships to attain projects. Based on 24-hour workforce and cheaper off-shore labor, ICI’s strategy allows them to cut down costs and implementation time for projects. While the parent company offers strategic advantages, ICI and Infosys often clash due to overlap in the two companies abilities to complete customer engagements. Although ICI and Infosys are separate entities the two work closely together, thus both must work hard to interface with one another. ICI’s unique organization and strategy creates a value chain which sets them apart from their competitors and produces great benefits for their clients. ICI created the GDM value chain for their consulting services, the “1-1-3 model,” which consisted of giving the client one onsite ICI resource, one onsite Infosys Technologies resource, and three offshore Infosys Technologies resources. This model allows ICI to cut costs with a blended rate of $100 per hour due to the cheaper labor of the offshore resources. Utilizing the offshore resources also allows ICI to shorten the length of the project from design to implementation as someone can be working on the project all hours of the day. During the day, the onsite team works with the client to observe the company’s processes and create a design. During the night, the offshore team can work on converting the design into software configuration which can then be presented and tested with the client the next day. This allows the team to complete the project much faster than if the entire team was in the same time zone and allows the client to provide daily input into what they want in the end. The 1-1-3 strategy improved ICI’s operational effectiveness as they performed the same implementation faster than...
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