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Assignment 6 Infosys Technologies Ltd

Submitted by Rohit Bhagat


EPGPKC06067

What quantifiable cost savings not specified in project contracts has Infosys delivered to PFS during
the past five years?

Onsite Resources Cost, Offshore Resources, Onsite total Cost, Offshore Costs, Total Costs Saving
For the past 5 Years were not specified

Onsite cost:
Year 1- 24,000,000
Year 2- 24,000,000
Onsite and Offsite cost Year 3= 7,200,000+9,600,000
Year 4 Onsite and Offsite cost 7,200,000+3,840,000
Year 5 also 7,200,000+ 3,840,000

How can Infosys’ PFS Account Team persuasively sell the firm’s ability to deliver a superior end-to-
end solution for the Ariba e-Procurement System project?

Infosys has always exceeded expectations of its customers in terms of Quality, timeliness and
reliability as they were able to handle strategic and conceptual consulting as they were already
exposed to all aspects of PFS IT systems.
Another advantage of Infosys is that their competitors had weaker expertise in the IT systems
maintenance area, with incomparable labour rates. Infosys has richness in the talent in the area of
consulting proving another advantage.
Also the in-house training will enable in delivering superior end-to-end solution for the Ariba e-
Procurement System project Cost Savings Calculations Re Engineering Project assignment $12.9 Mn
By transfer people to India in 3rd year:
250-75*8,000*12-250*3,200x12= $7,200,000
Reassigning of the personal $ 575,600 Data Corruption Total= 0.5 million
Programmer: 24*3*4*$45 = 12,960
Tech assistant: 24*1*1*$40 = 960
Cost saving from idle time = 24*125*$42 = 504,000 cpu
Cost saving = 24*15*0.39 = 140
Record algorithm Total = 0.04millionReduction in disability claims
Data and assumption = $1,400,000
Cash reserve reduction = 0.1x 14 million = 1.4 million
Therefore, Total Savings = 12.9 + 0.5 +.04 + 1.4 = $14.9Mn