Business Case Studies, Leadership Case Study, Tata Group,Ratan Tata

Code :BSM0057B

Year : 2006

Industry : Information Technology and IT Enabled Services

Region : India

Teaching Note:Not Available

Structured Assignment :Not Available

Abstract: Infosys, a software development company in India, initially provided onsite service to its global clients. This being an expensive proposition, the company decided to complete projects at its Indian offshore development centers and then implement them at the clients' places. This was also a challenge as there was no service provider at the clients' locations, causing a deterrent to the progress of projects. Besides, miscommunication added to the delay of project completion. To serve its clients effectively and in time, Infosys decided to open proximity centers close to the clients' locations. In the late 1990s, due to stiff competition from IBM, Wipro and TCS, Infosys decided to adopt the Global Delivery Model (GDM), which was based on the principle of taking work where it could be done best in an economical manner and with the least amount of acceptable risk. In 2005 Infosys’ revenue stood at $1,592 million.

Infosys found that IBM, Accenture, TCS and Wipro had also adapted GDM. Industry observers felt that GDM was a standardized IT model but had no competitive advantage. To combat competition and to differentiate itself from other Global IT giants, Infosys started working on GDM 2.0 and called it the "Collaborative Distributed Delivery Model" (CDDM).

To implement the new GDM, Infosys had to set up more offshore development centers around the globe. To succeed in its efforts Infosys decided to acquire companies around the globe.

Would Infosys succeed in gaining the competitive advantage and the differentiator that it hoped to achieve with its improved GDM?