INFOSYS : GROWING SHARE OF

CUSTOMERS BUSINESS
Murtaza Adenwala
Roll no. 016
Organization: Experian India
INFOSYS : GROWING SHARE OF CUSTOMERS BUSINESS
• What “knowledge transfer time” cost savings can PFS expect from sole sourcing
the Ariba e-Procurement System project?
– Asking Infosys to prepare a proposal for Ariba e-Procurement system project was a
thoughtful move by the seniors as Infosys work had exceeded PFS expectation both in
terms of quality and costs
– Infosys had a bigger advantage over competition as Infosys maintenance work had exposed
their people to all aspects of PFS IT system as well as how PFS approaches business. As a
result Infosys will be farther down the learning curve at the beginning of the project. That
might translate into better work more quickly which would yield significant cost savings for
PFS
– By being involved from day one in the project Infosys will be able to forgo the' Knowledge
transfer time’ required to bring programmers up-to-speed on technical details of the system
had they entered at the maintenance stage
– To master the Ariba e-Procurement system installed and customized by another vendor,
Infosys would need to deploy 5 programmers and it would take them 12 weeks to master
the system. PFS would have to pay FTE of $8000 p.m. By awarding the development and
maintenance business PFS will save “knowledge transfer time” cost from one vendor to the
another
– If Infosys is awarded the development and maintenance business of the project they would
be in a far better position to quickly track down the source of any software problems
 INFOSYS : GROWING SHARE OF CUSTOMERS BUSINESS
• Looking beyond the immediate Ariba e-Procurement System project, what
challenging issues related to global marketing does this case pose for Infosys?
– Infosys thrives on highly collaborative relationships with loyal customer firms, its sales and
marketing efforts not surprisingly are organized around strategic accounts
– Marketing the Offshore outsourcing model to the U.S and Europe market to win lucrative
contracts
• Marketing efforts to highlight resource cost advantage to international organizations by
outsourcing projects in India
– Marketing maintenance contracts for legacy systems
• Efforts to create importance of maintenance for mission critical IT applications to
ensure 1 % probability of downtime
– Business domain excellence
• Creating customized marketing communication among the targeted industries
introducing Infosys end-to-end solution
– Constant CRM programs which highlights Infosys achievements in terms of winning new
projects, new service offerings, CSR etc. as 80% of Infosys revenue comes from existing and
loyal customers
INFOSYS : GROWING SHARE OF CUSTOMERS BUSINESS

• What quantifiable cost savings not specified in project contracts has Infosys
delivered to PFS during the past five years?
– Providing a ‘CIO Dashboard’ an online tool to the PFS managers which demonstrates 2 metrics for each
dimension – Quality, timeliness, and reliability
– During each of the 5 years Infosys has exceeded PFS targets by a wide margin
– Scrutinizing the nature of the tasks in each project, reengineering each project and planning the
allocation of resources
• Surplus 150 Infoscions in Bangalore were transferred to other PFS projects at “no extra charge” to
PFS
– Given that the cost of a fulfillment equivalent (FTE) are $8000 p.m (Rs. 368000) in the U.S and $3,200
p.m (Rs. 147,200) in India , the resource reductions represent a significant benefit for PFS
• Pre-Scrutinization scenario Post-Scrutinization scenario

Period of engagement Resource size Period of engagement Resource size

with PFS with PFS

Year 3 75 Infoscions in U.S Year 4 & 5 75 Infoscions in U.S

250 people in India 100 people in India

INFOSYS : GROWING SHARE OF CUSTOMERS BUSINESS

• Improving employee productivity rather than just gaining labor savings from moving people
offshore, is Infosys key goal and value proposition
• Data corruption prevention subroutine
– Problem before Infosys was awarded the responsibility of maintaining legacy systems
• Batch programs occasionally ran later than 5:00 a.m corrupting the data being used
from central database and shutdown the online system, idling 125 PFS workers for
at least 4 hours
– Solution
• Infoscions wrote a subroutine that automatically shutdown all batch programs at
5:00 a.m
INFOSYS : GROWING SHARE OF CUSTOMERS BUSINESS

• Cost Savings
– Reduced average number of corruption incidents per year from 24 to 0
– Infosys demonstrated to PFS early on in the engagement that Infoscions had the ability to
diagnose problems and write subroutines to correct them

No of FTE per
Particulars Resources hours/seconds hour/second Savings
3 $45x4 = $180
One corruption event programmers 4hrs $45/hr (Rs.8,280)
Technical
support
assistance 1hr $40/hr (Rs.1,840)
$42x4 = $168
(Rs.7,728)
Employees idle time 125 4hrs $42/hr
Running programs to 15 seconds @ 15x$.39=
Reconstituting corrupt data (CPU) $.39/second $5.85 (Rs.269)
 INFOSYS : GROWING SHARE OF CUSTOMERS BUSINESS
• 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
• PFS senior management saw Infosys as an outstanding vendor for “offshore outsourcing of IT maintenance
projects. Below are the e.g. of how the ability of the PFS account team in delivering high quality maintenance
solutions which would create a drive to sell firms ability to manage superior end-to-end solution for e-
Procurement project
– Team Support
• Infosys senior management would assist the PFS account management team by assigning a number
of support personnel to the project
• Program manager, 3 business analysts, a technical specialists on Ariba programming, a product
specialist familiar with e-Procurement software, a development analysts, and a technical analysts
• Enterprise Solution Group would contribute a team skilled in executing the company’s award
winning “Package Implementation Methodology”. This would insure that the Ariba e-procurement
software is up and running in a flawless manner in short order
• A technical specialist from Ariba would assist during the sales presentation and implementation
phases of the project
– Overall Quality of Infosys work
• At Infosys work is evaluated on 3 dimensions – quality, timeliness, and reliability
• Infosys has exceeded PFS targets by a wide margin during each of the 5 years managing PFS
portfolio of maintenance projects
– Reengineering Project Assignments
• Reengineering project process and employee tasks are key competencies of the Infosys human
resource department
INFOSYS : GROWING SHARE OF CUSTOMERS BUSINESS

• Data corruption prevention subroutine

– Ability to diagnose problems and write subroutines to reduce number of corruption incidents per year
• Record Comparison algorithm
– Optimizing program process efficiency by writing a critical algorithm for PFS that improved record
comparison processing efficiency by 56% and processing time by 8 hours
– Due to the comparison algorithm Infosys was able to create additional 9 hours of free CPU time and
eliminate the possibility of sending the “compliance” analyses on all of its customer accounts and
report their findings to the insurance commission of each state within the stipulated deadline (last day
of each month). This made the possibility of the state penalizing PFS negligible
• Reduction in Disability Claims Reserves
– Reducing the cash reserves to pay disability claims by $14 million
– Accomplished this by streamlining and reengineering not only the claims submission process but also
the claims payment process
– Skill of reengineering payment process will be essential in the case of an e-procurement system
• Ongoing Ariba e-Procurement Projects
– Infosys has initiated 3 end-to-end Ariba e-Procurement system projects for 2 retailers and healthcare
organization
– Incase of healthcare organization, Infosys has already been able to save them $100,000 (Rs.
4,600,000) per year by switching the company’s ‘change order’ procedures from manual to an online
software-based system
• Provide a 5 weeks training of Java training to the vendor management team of PFS during their visit to
Bangalore
– Training sessions to be conducted in the Infosys Education and Research group
– Demonstrations of Java projects successfully completed in the past
• Introduce PFS visitors to the new hires who come to Infosys with considerable consulting experience