Organization Structure

Infosys in the beginning

Infosys was a start-up founded by 7 individuals. Early days were a constant struggle Dynamic Environment. Companies focus was on delivering a single product based on single technology in a single marketplace. Low degree of Formalization, low complexity and high centralization.

Period from 1989 - 2002

In 1989, company lost some key accounts. Drastic change in the overall strategy. The period after liberalization led to massive growth. Started catering to different market segments and different clients. Company had to adhere to a new set of guidelines and streamline process due to the IPO in 1992. The company structure was split up into functional units. Project Matrix Structure was employed within the production unit. Characterized by increasing complexity, moderate formalization and moderate degree of centralization.

2003 onwards

Company had become too big to carry on without modifying the existing structure. Concept of decentralization was brought in. Company divided into IBUs. Each IBU concentrated on a particular sector. Made the company more customers focused. A Gamma B transformation. Managers of each IBU were empowered to take decisions to further the IBUs prospects. Role Enlargement and Role Specialization. Decentralized system with an ability to take quick.

Crucial as a result of the dynamic world order after the Sept 11 attacks and Asian financial crisis. Within each IBU the project matrix structure was carried forward. In 2007, the IBU concept was further refined to take into account geographic growth opportunities. The 2007 reorganization was also for role enlargement of the second line of business leaders.

The McKinsey 7S Framework

By Tom Peters and Robert Waterman: Helps analyse how well the organization is positioned to achieve its intended objective.
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The 7S model can be used in a wide variety of situations where an alignment perspective is useful, for example to help you: Improve the performance of a company. Examine the likely effects of future changes within a company. Align departments and processes during a merger or acquisition. Determine how best to implement a proposed strategy.

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The McKinsey 7S model can be applied to elements of a team or a project as well. The alignment issues apply, regardless of how you decide to define the scope of the areas you study. The McKinsey 7S model involves seven interdependent factors which are categorized as either "hard" or "soft" elements "Hard" elements are easier to identify and management can directly influence them: These are strategy statements; organization charts and reporting lines; and formal processes and IT systems. "Soft" elements, on the other hand, can be more difficult to describe, and are less tangible and more influenced by culture.

The McKinsey 7S Framework

Placing Shared Values in the middle of the model emphasizes that these values are central to the development of all the other critical elements. The company's structure, strategy, systems, style, staff and skills all stem from why the organization was originally created, and what it stands for. The original vision of the company was formed from the values of the creators. As the values change, so do all the other elements.

Organization Strategy

Infosys has adopted a client-focused strategy to achieve growth Focuses on limited number of large organizations throughout world Infosys commands premium margins Company has a image of quality driven model rather than cost-differentiating model Increase business from existing and new clients. Expand geographically Enhance solution set It has added new service offerings, such as consulting, business process management, systems integration and infrastructure management, which are major contributors to its growth. Develop deep industry knowledge Enhance brand visibility Pursue alliances and strategic acquisitions MARKET PENETRATION STRATEGY:
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Current Markets: USA and Europe Current Products: ADM, BPO, KPO etc.

MARKET DEVELOPMENT STRATEGY:

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New Market: India, Middle-east and Australia Current Product: ADM, BPO, KPO etc.

PRODUCT DEVELOPMENT STRATEGY:

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Current Market: USA and Europe New Product: Consultancy and package implementation services in relatively growing sectors esp. healthcare, life sciences etc.

DIVERSIFICATION:
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New Market: India, Middle-east and Australia New product: Consultancy and package implementation services in relatively growing sectors esp. healthcare, life sciences etc.

Other Strategies

CONCENTRATION:
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90% of Infosys revenues from American and European nations. VERTICAL INTEGRATION:

Infosys recently bid to acquire a European major Axon consultancy.

INNOVATION:
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The Software Engineering and Technology Labs (SET Labs) at Infosys- centre for technology research in software engineering & enterprise technology Infosys promotes a favourable work environment that encourages innovation and meritocracy.

GENERIC STRATEGIES
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Little differentiation in low-end services of value chain; high differentiation in high end services of value chain like software products and package solutions. Focus on quality, customer relationship management, and timely-delivery.

The Dimensions: Creating Balance

Infosys pioneered the Global Delivery Model (GDM) to ensure the distribution of application and business process lifecycle activities and resources.

Differentiation v/s Integration

There is high degree of Integration in the company. There are onsite and fixed office teams working on same projects and integrating at the end. There is bi-directional flow of information between the teams.

Centralization v/s Decentralization

There cannot be a clear distinction between centralization and decentralization in case of Infosys. There are small organic teams which do not follow stringent rules and codes. But Infosys at a holistic level has complete centralization within its operations and organization. So, the structure followed by Infosys is Contingency structure which incorporates both Centralization and Decentralization.

Standardization v/s Mutual Adjustment

At the holistic level it strictly follows a Standardized structure in which each and every individual has to follow certain rules and regulations before taking any step or implementing any new policy. From the mouths of employees of Infosys- We need to request and take permission even before installing a new software or any third party application in our company systems. But wherever small organic teams come into picture a bit of mutual adjustment is induced implicitly.

Awards Infosys has consistently been honored by customers, industry bodies, media and other influencers. The following are among the recognitions we received over the past year: Infosys topped a poll on best practices in corporate governance conducted byAsiamoney. Infosys was ranked among the top 50 most respected companies in the world by Reputation Institutes Global Reputation Pulse 2009. We have been voted the 'Most Admired Indian Company' in The Wall Street Journal Asia 200 every year since 2000. We won Sears Holding Corporation's Partners in Progress award for the second consecutive year. We also won HDS' Diamond Award for 'Best Virtualization Strategy' and Platinum Award for 'Best Green Strategy for a Data Center'. Infosys was also listed in the Most Admired Knowledge Enterprises (MAKE) 2008 study andForbes' Asian Fabulous 50 for the fourth consecutive year. We were ranked among the 'Best Companies for Leaders' in a survey by Bloomberg BusinessWeek and Hay Group in 2009, 'India's Best Companies to Work For - 2009' in a survey by the Great Place to Work Institute and conferred with the NASSCOM gender inclusivity award. Asset magazine acclaimed our Corporate Governance, acknowledging our corporate policies and practices as among the best in the industry.

 CSR in Infosys

in 1996, Infosys created the Infosys Foundation in the state of Karnataka, operating in the areas of health care, social rehabilitation and rural uplift, education, arts and culture. Since then, this foundation has spread to the Indian states of Tamil Nadu, Andhra Pradesh, Maharashtra,Kerala, Orissa and Punjab. The Infosys Foundation is headed by Mrs. Sudha Murthy, wife of Chairman Narayana Murthy. Since 2004, Infosys has embarked on a series of initiatives to consolidate and formalize its academic relationships worldwide under the umbrella of a program called AcE - Academic Entente. Through case study writing, participation in academic conferences and university events, research collaborations, hosting study trips to Infosys Development Centers and running the InStep Global Internship Program, the company communicates with important stakeholders in the academia.