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

Introduction:In 1990, the Indian software industry was dominated by players like TCS, Wipro, Satyam and Infosys. The liberalized policy of the Indian Government in 1991 encouraged foreign companies like Texas Instruments, Digital Equipment, Hewlett-Packard and IBM to venture into the Indian software market. These companies progressed steadily and started posing a threat to the Indian software companies in the late 1990s. To compete with these global giants and to leverage cost, the Indian software companies adopted the Global Delivery Model (GDM). Among these Indian companies, Infosys was the pioneer among Indian software companies to adopt GDM and the company used this model in its global expansion plan.

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...