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Assignment: Individual Assignment 5 - Infosys: Growing Share of A Customer's Business

This document is a report submitted by Vinay Kumar to Prof. Prakash Satyavageeswaran in partial fulfillment of the course requirements for Business to Business Marketing. The report discusses Infosys' initial business model focusing on offshore outsourcing and their later pivot to domain excellence. It also compares Infosys and Excalibur Consulting's approaches to convincing PFS for an e-procurement systems project.

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Vinay
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166 views4 pages

Assignment: Individual Assignment 5 - Infosys: Growing Share of A Customer's Business

This document is a report submitted by Vinay Kumar to Prof. Prakash Satyavageeswaran in partial fulfillment of the course requirements for Business to Business Marketing. The report discusses Infosys' initial business model focusing on offshore outsourcing and their later pivot to domain excellence. It also compares Infosys and Excalibur Consulting's approaches to convincing PFS for an e-procurement systems project.

Uploaded by

Vinay
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Assignment:

Individual Assignment 5 - Infosys: Growing share of a customer’s business

A Report submitted to

Prof. Prakash Satyavageeswaran

In partial fulfilment of the requirements of the course Business to Business Marketing

By

Vinay Kumar

Roll No. 1911293

Section B

On

26-08-2020
This submission is my work and my work alone. I have not taken any help from any internet
or other sources (other than my notes, course pack, and textbook) or from any other person to
arrive the answer.
1. What kind of work was Infosys doing initially (before the early 1990s) and why were
they successful?

Ans. The kind of work Infosys was doing before the early 1990s :-
1) Infosys was dependent upon offshore outsourcing model. They were playing the
global outrage model.
2) Availability of world-class IT professionals at a low cost benefitted the Infosys.
Salary of Indian software engineer was 40% lower than a software engineer in United
States.
3) Low cost human resources helped Infosys to win lucrative contracts for labour
intensive work like data entry, customer billing, accounts billing and transaction
processing.
4) Infosys issued stock option plans for employees which attracted most talented
managers and programmers from India.
5) They build an organization where wealth could be created honestly and ethically.
6) They also devoted their time to improve social welfare and contributed funds to
charities.

Two reasons for their success were:-

1) Availability of world-class IT professionals at a low cost in India helped them to


play the global outrage model.
2) Government decision to target IT as the source of significant economic
development of India. This eliminated significant red tap association with new
business formation and offered free or low cost infrastructure.

2. Why did marketing end-to-end solutions make sense for Infosys and what are possible
reasons for it to pivot from end-to-end solutions in general to business domain
excellence?

Ans. Marketing end-to-end solutions make sense for Infosys because:-


1) End-to-end solutions of Infosys could create better create and share their customers
value.
2) This will help Infosys to gain greater share of customers business.
3) 80% of revenue comes from loyal or existing customers and End-to-end solutions will
give a path to capture it.
4) 60% of the IT costs were locked in during the period from design to installation. So
Infosys involved consulting services such as design, customization, business process
and installation.
5) Involvement of Infosys personal during the initial stages of life cycle of system will
save days for Infosys personal to understand how the system will work. This will save
significant costs.

By 2010, the Infosys business model evolved towards business domain excellence as they
shift their greater focus on specific industries instead of pursuing all potential clients with
uniform market offerings. They offered highly customized end-to-end solutions to a
limited number of market segments which are potentially high in profits. And their IT
applications were mission critical. Their mainly targeted industries were health care,
insurance and retailing.

3. For the PFS e-procurement systems project, how was the task of convincing PFS
different for Excalibur Consulting compared with Infosys?

Ans. Excalibur has an excellent reputation for delivering operations consulting. They
have to convince PFs that they can deliver maintenance portion of an end to end solution
whereas Infosys has outstanding performance in maintenance. Their challenge was to
convince them that they can also handle the strategic and conceptual consulting portion
of the project.

Excalibur Consulting was the leading operations consulting firm. They prefer to work on grand
strategy and highly conceptual big projects. Also, their labour rates were non- competitive. So
they have a tendency to avoid low value and low profit projects such as maintenance that’s why
they didn’t have good expertise in that area whereas Infosys delivered consistent high
performance on the dimensions of quality, timeliness and reliability. They have saved more than
13 million dollars in the five years of their relationship. They have proved the organizations that
they have capability to provide end to end solutions. They have increased productivity
throughout the years by removal of inefficient process and rationalization of resources. People
and process is their strength. They also enabled globalization and access to expertise of their
workforce. Also, this Infosys has their setup and employees from India. This will help them to
bid low prices as compared to the the competitors.

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