Infosys Consulting
Infosys Consulting
Infosys Consulting
Strategic Position Culture Organization Structure Why IT Consulting Market segment in Consulting Structure Future action plan for IC and ITL
Growing extremely quickly Head Count + Revenue 2nd largest s/w exporter by revenue CAGR ~ 26% Hiring +30,000 people annually Trying to push into new areas & become trusted business transformation partner Extremely successful at building business among most valued technology programs
ITL Revenue
Employees
2004 $1 Bn
25,000
2011 $6 Bn
130,000
Transform primary focus of IC Operate Outsourcing engagements specific to IT application development & maintenance Innovate platforms & products that would enable ITL to use new avenue to serve clients
Reorganization (2011)
Manufacturing High Tech, A&D, process & auto Financial Services Banking, Capital Markets & Insurance ECS Energy, Comm., Services, Media & Utilities RCL Retail, consumer packaged goods, Logistics & Life Sciences
ITL Culture
+130,000 people Avg Age of 27yrs Indian origin All doing the same thing Rigid Standards & Processes & Tools & Taxonomy & so forth Lack of latitude & flexibility
Formation of IC Ambition of founders to be more than just offshore software developers Transform identified as one of three key horizontal business IC conceived to lead transformation business IC also responsible to utilize operation infrastructure built by ITL Consulting market segment Not only limited to developed economies but extended to BRICS, Mexico etc Large segment ( Accenture ~ $23bn, IBM~56bn,TCS ~6.7bn
A new subsidiary Different business entailed different needs Parent company ITL relied on rigid standards and processes while consulting business required flexibility and risk taking Need to build a culture from scratch which could not have been possible without a new business entity Managerial leeway required to manage different growth trajectory and focus on transformation business
Continue with Value Realization Method Hiring the right candidate that understands market(business) as well as IT IC to play transformation part and ITL to play Technology roles Executive Steering committees Refinement Penetrate into Indian Market G-Local taste Huge Potential in the Market Understanding cultural context essential for Consulting: With large number of Indians as employees this would be easier Sales process can be easier IC to leverage the ITL existing clients and bring technology projects for ITL Infosys Sales teams to be incentivized on ICI Business Organic Growth Like IBM Job Rotation
Appendix
Proposed Hierarchy
CXOs
Escalation Level -4
ITL
Executive Sponsors - Partners
IC
Escalation Level -3
Steering Committee
ITL Account Managers, Delivery Managers, Business Manager, Strategic Architects
Escalation Level -2
IC Sr. Consultants
Escalation Level -1
Working Committee
ITL Group Project Managers, Project Managers, Technology Leads, Architects
IC Associate Consultants
ITL Leadership says focus on customer value i.e business value through technology work IC Leadership says move the companys core value from customer delight to customer value even it is painful for the customer
100000000
80000000
60000000
40000000
20000000
0 2010 2009
2010
2009
Appendix-3: VRM
Appendix