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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Please note:
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 Global Delivery Model that has been at the heart of
our execution is more than just a way of getting work done offshore. It is a
genuine business innovation that delivers a superior value proposition at higher
quality and lower cost. By leveraging global resources and global strengths, it
creates a new degree of freedom."1
- Nandan Nilekani, President, CEO and Managing Director,
Infosys, in 2006.
"Infosys can obtain skilled labour at better rates than
its customers can in their own region and the focus of the GDM is maximizing
skill while minimizing cost."2
- ZapThink, Massachusetts-based IT Market Intelligence Firm,
in 2005.
The 'Leader'
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In February 2006, Gartner3, a research firm focused on technology industries,
published its 'Magic Quadrant for Offshore Application Services, 2006'.
This report assessed 30 leading offshore application service providers. For its
magic quadrant, Gartner evaluated service providers on the basis of parameters
such as completeness of vision and their ability to execute4.
India-based Infosys Technologies (Infosys) was placed in the 'leaders' quadrant,
signifying clear vision of the market direction and building competencies to
sustain its leadership position in the market
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(Refer Exhibit I for the criteria used in the Magic Quadrant, and Exhibit II
for traits of the companies placed in the 'Leaders' quadrant).
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Gartner's magic quadrant analyzed the competencies of the service providers
based on their Global Delivery Model (GDM). Gartner said that Infosys' 'strong management capability relative to the other pure-play offshore
providers' was one of the key demonstrated capabilities of the company.
S. Gopalakrishnan (Gopalakrishnan), Chief Operating Officer and Deputy Managing
Director of Infosys, said, "I am happy to see Infosys being recognized as a
leader in this Offshore Application Services Magic Quadrant, the first time
that Gartner has published one to focus on this area. This is an important
indicator for the mainstream acceptance of GDM by clients."5 |
GDM provided a superior value proposition at higher quality
and lower cost. The companies adopting this model leveraged their own global
resources and strengths to achieve higher profitability.
Infosys' Global Delivery Model
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