Infosys Consulting in 2006
Case Summary:
Infosys technology is a billion dollar company with over 58000 employees all around the world. Infosys operates in a number of business ventures that range from banking to retail and services provided by the company mainly focuses on end to end IT solutions. The company in 2004, established a strong brand equity and began to look for ways to combine its excellent reputations with service by launching a consulting unit. The company did not believe in acquiring existing companies as they thought it was not a viable option and solely focused on creating its own brand that was Infosys Consulting (ICI). This consulting unit was a wholly owned U.S based subsidiary. By the year 2006, this subsidiary employed over 200 employees. Through their model of low risk global delivery they accelerated their client schedules and at the same time reduced the company’s operating cost.
ICI focuses on providing consulting and IT services to the client globally and is driven mainly to compete with consulting firms such as IBM and Accenture. Indian companies like Infosys technology began to expand primarily because the US firms had gained confidence in working with them as they offered high quality services at low price points. In order to expand the company decided to carry out repeat business with the client base and also offer clients new opportunity to work with the company. Company employed a Global Delivery Model, this approach was called one-one-three model. The value proposition of the one-one-three model was to offer business consulting resources on site at the market rate for premium business consulting services, an on site IT implementation resource at the rate that was lower than the average on site developer, and three developers off shore at lower than the market rate. Although the model was not difficult to learn but there was a structural challenge involved in replicating it. Hence, the competitors would take sometime in replicating the model.This gave the
Infosys technology is a billion dollar company with over 58000 employees all around the world. Infosys operates in a number of business ventures that range from banking to retail and services provided by the company mainly focuses on end to end IT solutions. The company in 2004, established a strong brand equity and began to look for ways to combine its excellent reputations with service by launching a consulting unit. The company did not believe in acquiring existing companies as they thought it was not a viable option and solely focused on creating its own brand that was Infosys Consulting (ICI). This consulting unit was a wholly owned U.S based subsidiary. By the year 2006, this subsidiary employed over 200 employees. Through their model of low risk global delivery they accelerated their client schedules and at the same time reduced the company’s operating cost.
ICI focuses on providing consulting and IT services to the client globally and is driven mainly to compete with consulting firms such as IBM and Accenture. Indian companies like Infosys technology began to expand primarily because the US firms had gained confidence in working with them as they offered high quality services at low price points. In order to expand the company decided to carry out repeat business with the client base and also offer clients new opportunity to work with the company. Company employed a Global Delivery Model, this approach was called one-one-three model. The value proposition of the one-one-three model was to offer business consulting resources on site at the market rate for premium business consulting services, an on site IT implementation resource at the rate that was lower than the average on site developer, and three developers off shore at lower than the market rate. Although the model was not difficult to learn but there was a structural challenge involved in replicating it. Hence, the competitors would take sometime in replicating the model.This gave the