Infosys' Global Delivery Model

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Case Details:

Case Code : OPER059
Case Length : 14 Pages
Period : 1995-2006
Organization : Infosys Technologies
Pub Date : 2006
Teaching Note : Available
Countries : India/Global
Industry : Software

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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The 'Leader' Contd..

Infosys used GDM as a strategic outsourcing tool; using it, the company could take the work to the place where it could be best performed at lowest cost with minimum risk. For a GDM to be efficient, the work had to be broken into logical components and distributed to locations where they could generate maximum value. By using GDM, Infosys delivered the highest process and quality standards, while leveraging differences in cost, quality and skill sets of manpower in different locations. The ultimate objective was to pass on these benefits to its clients.

The major part of Infosys' revenues was derived from GDM based application services.

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The company had decided to enhance its GDM capabilities by applying it to new services and adding in new global delivery locations. Commenting on the GDM, Manjari Raman, a Boston based management writer said, "What made Infosys' GDM disruptive was its framework for distributed project management - the ability to deploy multi-location, multi-time-zone teams to execute projects efficiently and at low cost."⁶

Background Note

Infosys was incorporated as Infosys Consultants Private Limited⁷ on July 02, 1981 by a group of seven professionals⁸. From the beginning, Infosys relied heavily on overseas projects. One of the founders, Narayana Murthy, stayed in India, while the others went to the US to carry out onsite programming for corporate clients. One of Infosys' first clients was the US-based sports shoe manufacturer Reebok. Infosys hired its first set of employees in 1982 from the Indian Institute of Technology, Chennai. These employees were provided training and were sent abroad for onsite projects.

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6] Manjari Raman, "Can Infosys be a Disruptive Innovator?" Business Standard, April 17, 2006.

7] In June 1992, the company's name was changed to Infosys Technologies Limited.

8] The group comprised Narayana Murthy, Nandan Nilekani, S. Gopalakrishnan, K. Dinesh, SB Shibulal, NS Raghavan and Ashok Arora. Ashok Arora left Infosys in 1983 to join a US-based software company.