58
Global Footprint
of Infosys Technologies Limited
The company's employee strength of 69,432 (as on December 31, 2006) is globally spread across 39 offices. Infosys was the first Indian
company to be listed on the NASDAQ and the first Indian company to be included in the NASDAQ 100 composite index.The US market contributes the largest share to its revenues.The company is expanding aggressively in Europe and Asia.
Infosys (Australia) has won several new clients and Infosys (China) is focusing on serving local as well as a global clientele. Infosys is among the fastest- growing consulting and IT services organisations in the EMEA region, with a growth rate of over 40 per cent.
The US accounts for 63 per cent of the total revenue, followed by Europe (27 per cent), Rest of the World (8 per cent), and India (2 per cent).
Infosys Technologies Limited in the United States of America
Mode of Operation
Infosys operates in the USA through several marketing offices and development centers spread across various locations. It also has its wholly- owned subsidiary, Infosys Consulting Inc. (ICI), which is based in Dallas (USA).
Overview
Infosys established its sales office in the USA in
Company Background
Infosys Technologies Ltd. provides consulting and IT services to clients across the world - and positions itself as partners to conceptualise and realise technology-driven business transformation initiatives for its clients.The company utilizes a low- risk Global Delivery Model (GDM) to accelerate delivery with a high degree of time and cost predictability. In the fiscal ended March 31, 2006, it earned revenues worth US$ 2,152 million and had a worldwide employee strength of more than 69,000 as on December 31, 2006.
Incorporated in 1981, it offers services such as application development and maintenance,
corporate performance management, independent validation, infrastructure, packaged application and product engineering and systems integration.
Infosys vertical business domains include hi-tech manufacturing, banking, financial services and insurance (BFSI), telecom, retail, automobile and aerospace, energy and utilities, transportation, and others.
Infosys has five subsidiaries globally - Infosys BPO (formerly Progeon), Infosys Technology (Australia) Pty. Ltd. (ITPL), Infosys Technology (Shanghai) Co.
Ltd. (ITCL), Progeon S.R.O. (Czech Republic), and Infosys Consulting, Inc. (ICI). ITPL, ITCL, Progeon S.R.O, and ICI are wholly-owned subsidiaries of the company.The company has a 99.91 per cent stake in Infosys BPO.
INFOSYS
TECHNOLOGIES LIMITED
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59 global delivery and implementation model. It serves
various Fortune 1000 and FTSE 500 clients in North America.
For the nine months ended December 31, 2006, the company recorded revenues of US$ 33.96 million and had an employee strength of 205.
Infosys BPO
In 2002, Infosys BPO was established as the business outsourcing subsidiary of Infosys
Technologies. It has provided outsourcing solutions to clients in nearly 500 processes across several vertical and horizontal focus areas. It caters to its clients in the USA through its office in New Jersey.
It provides solutions in various verticals - banking, Hi-tech, insurance, automotive and aerospace, healthcare and life sciences, retail and consumer packaged goods, resources, energy and utility, and transportation and services.
Success Factors
Creating Value for Clients Competing to win in a flat world
Infosys has identified four shifts in the world of business:
a. From dreading the China price to beating the China price
b. Making money from information c. The imperative of innovating fast
d. Win in the turns (phases of the business cycle where there is a paradigm shift)
Infosys has modeled itself as a flat-world company by working in the best locations to reduce cost and deliver optimal value.Through its innovative solutions, its clients make these shifts with ease and stay competitive.
Low-cost global delivery model
Infosys has evolved its global delivery model (GDM) that integrates on-site and offshore 1987. It focuses on three business verticals in the
USA - business and technology consulting, IT services and BPO.To cater to the requirements of the US market, it employs approximately 8,000 professionals in various sales and marketing offices and client facilities. Infosys has offices in 14
locations across the USA - Atlanta, Bellevue (Washington), Bridgewater (New Jersey), Charlotte (North Carolina), Detroit, Fremont (California), Houston, Lake Forest (California), Lisle (Illinois), New York, Phoenix (Arizona), Plano (Texas), Quincy (Massachusetts), and Reston (Virginia). Infosys has eight proximity development centers for providing extensive services to its clients in the USA.
For the nine months ending December 31, 2006, the company generated revenues of US$ 1.4 billion from the North American market.
Infosys Consulting Inc.
Infosys Consulting Inc. (ICI) was established in 2004 in Texas as a consulting subsidiary of Infosys.
It is headquartered in San Francisco (Fremont, California) and has branches in Boston, Dallas and Southern California. ICI focuses on customer operations, IT strategy, enterprise systems and product operations.
ICI has achieved considerable success in the USA, which is attributable to its domain knowledge, process skills, technology expertise, and an efficient
Source: Reuters Knowledge
Infosys’ Revenues from the USA
2001 2002 2003 2004 2005
0 200 400 600 800 1000 1200 1400 1600
Year
US$ million 417
597
778
1045
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is more than a mere adherence to these benchmarks, but a proactive quest for process improvement, beyond conventional limits.
A number of quality tracking methodologies, tools and processes have been put in place to ensure superior quality products and services to Infosys clients - in each engagement and also across engagements, at the relationship level.
Relationships with Clients
Infosys has built strong and strategic relationships with its clients. A strong testimony to this is that over 95 per cent of its revenues come from its existing clients. As of December 31, 2006, it counted among its clients 46 of the Fortune 100 and 112 of the Fortune 500s.
Infosys has struck marketing and technology alliances with partners having best-in-class technologies in specific industries to develop business solutions for its clients.The focus will be to continue to develop and deliver industry- and technology-led solutions with alliance partners in order to deliver business value to clients.
Investing in Talent and Infrastructure
Infosys has been investing in recruiting and training the best technology professionals and supporting them with best-in-class infrastructure.
It has created a knowledge-networked work environment from where its employees provide high quality solutions to clients.These investments enhance employee productivity and reduce engagement risk for clients.The development centers use a multi-dimensional approach, planned to support growth and technology advancement, and ensure that the solutions for clients are built in the most productive and effective manner.
Global development centers in the US, Canada, the UK and Japan, expand the capabilities of Infosys' technology capabilities.This enables it to provide
customized services and solutions to its clients. Its global delivery model translates into a powerful value proposition for its clients, which includes:
• Quicker, seamless transitions, and early ownership
• Optimum onsite/offshore mixes through intelligent allocation of resources
• High degree of predictability through processes and reuse
• A strong relationship approach to ensure continuity and business-level focus
• Sharing of best practices and tools
• Depth and quality of resources, continuously retrained to suit project needs
• Adherence to SLA-based pricing models to ensure ROI and drive customer satisfaction
Gartner, in its 2006 Magic Quadrant report for '30 leading offshore application providers', positions Infosys as a leader in this quadrant. Understanding client-specific needs and providing value-added services has been the key to Infosys' success. It has delivered enhanced value to its US clients, which is substantiated by the fact that the company generates 95 per cent of its business through existing clients (repeat business).
Quality
The company has stringent processes in place to ensure that the IT services delivered surpass customer expectations.These cover all processes, interfaces and outputs in management, core and support process.
The quality systems at Infosys match the best in the world.The company benchmarks itself against international quality standards like ISO 9000, CMM and recently, the Malcolm Baldrige framework. In addition, it uses world-class techniques like the Six Sigma Cross Functional Process Mapping (CFPM) methodologies (from Motorola University) to facilitate process improvement. Infosys Quality
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61 Domain expertise
Infosys provides end-to-end business solutions that leverage technology.The solutions are for a dynamic environment where business and technology strategies converge.The approach focuses on novel business procedures, combining IT innovation and adoption while also leveraging an organisation's current IT assets. It works with large global corporations and new-generation technology companies to build new products or services and to implement prudent business and technology strategies in the current dynamic digital environment.
In 2004, Infosys reorganised and aligned its business units in key operational sectors. Its focus on growing verticals has yielded optimum results.
Experts with domain-specific skills, aligned across business units, have been able to develop industry- specific solutions.With superior solutions for its clients, the company generated increased business from the US market.
Future Plans
Infosys' global sourcing strategy is aligned with its business strategy, thereby enhancing its operational efficiency and delivering value-added services to its clients in the USA and globally.The company has structured its business processes, industry solutions, and business consulting services into various modules, resulting in enhanced flexibility and productivity. Infosys aims at being the leading global sourcing services provider in the US market.
The company plans to expand its service offerings in other upcoming business sectors in the US, which is its highest revenue generator.
global delivery model to leverage talent and infrastructure in different parts of the world.
These development centers are equipped with the latest technologies and facilities for enterprise networking, office productivity, collaborative software engineering and distributed project management.
These centers enhance client comfort and expand engagement capabilities to provide a wider range of services such as business consulting and technology architecture that involve high levels of client interaction over shorter engagement spans.They also complement larger campuses in India to accelerate engagement schedules and distribute engagement execution across multiple locations and time zones.
Infosys has invested in developing and maintaining a team of highly skilled professionals to support its GDM.The Infosys Leadership Institute and the Global Education Center, a state-of-the-art training facility at Mysore, India, is one of the largest residential training centers in the world. It can house 5,000 personnel for training on technical and business competencies. It is expanding the infrastructure to train 12,000 personnel in the residential campus.
Brand Building
Infosys has adopted an aggressive marketing and branding strategy in the USA. It has launched various campaigns such as public relations activities, analyst relations activities, investor relations
activities, event participations, online marketing, and direct marketing. Using these, the company focuses on creating a positive image among clients and increasing its market share.These branding efforts have paved the way for Infosys to establish itself as a well-recognized brand in the USA as well as over the globe.
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