1. The case ofInfosys Restructuring Raghunath Ganti 3/17/2010 ODC Grp 9: Infosys Restructuring 1 Sec A Group 9

2. The Questions Posed Use McKinsey’s 7S framework to analyze Infosys Identify Weakness of Infosys and analyze the changes made in the given context and comment on its effectiveness in leveraging the strengths and addressing the weakness. 3/17/2010 Grp 9 ODC: Infosys Restructuring 2

3. About Infosys - Essentials 2nd largest Indian IT firm with over 1 Lakh employees Global footprint, offices in multiple countries Pioneered the Global Delivery Model (GDM) GDM principle of taking work to the location with best talent, best economic sense, least amount of acceptable risk. 3/17/2010 Grp 9 ODC: Infosys Restructuring 3

4. Core Strategies GDM Moving up the Value Chain PSPD Model Predictability of Revenues, Sustainability of Revenues, Profitability, De-risking. 3/17/2010 Grp 9 ODC: Infosys Restructuring 4

5. Organization Structure:Concept of IBU and its Success Primarily a s/w dev & maintenance company Programmers leverage past experience most effectively when concentrated on one industry. Industry Business Unit concept Structure featured a large no. of small business units, IBU was effectively a separate company in itself 3/17/2010 Grp 9 ODC: Infosys Restructuring 5

6. Q1: The 7S: Strategies 3/17/2010 Grp 9 ODC: Infosys Restructuring 6 Client-focused strategy to achieve growth Focuses on limited number of large organizations Rather than focusing on numerous small organizations Commands premium margins Some time prefers to walk-out rather than compromise Increase business from existing and new clients Expand geographically Develop deep industry knowledge

7. Q1: The 7S: Staff (HR) 3/17/2010 Grp 9 ODC: Infosys Restructuring 7 Knowledge-based industry, so Human capital important Emphasis on selecting right candidates Spends about 2.65 per cent of its revenues on up gradation of employees’ skills,

8. Q1: The 7S: Style (Leadership) 3/17/2010 Grp 9 ODC: Infosys Restructuring 8 Leadership is based on high business vision and predominantly supportive styles. Emphasis on developing leadership qualities: ILI Open door policy, continuous sharing of information

9. Q1: The 7S: Skills 3/17/2010 Grp 9 ODC: Infosys Restructuring 9 Focus on continuous skills improvements Mandatory certifications for domain and technology Projects at CMMi level Knowledge Management given special focus

10. Q1: The 7S: Other S Structure IBU Free form organization Shared Values C-LIFE Systems 3/17/2010 Grp 9 ODC: Infosys Restructuring 10

11. Q2: Weaknesses 3/17/2010 Grp 9 ODC: Infosys Restructuring 11 Excessive dependence on US for revenues Excessive dependence on BFSI sector for revenues Weak player in domestic markets Low R&D spending compared to global IT firms Low expertise in high end services like Consultancy

12. Drivers for Change 3/17/2010 Grp 9 ODC: Infosys Restructuring 12 Growth opportunities in non-US. India, Europe, Asia and other parts of the world The need to move into in the high value add segment like Design, Consulting

13. Current Structure: Problems 3/17/2010 Grp 9 ODC: Infosys Restructuring 13 Lack of expertise in dealing with the European markets Unable to capture the domestic Indian market. Lack of large IP ownership necessary to be able to capture the markets in the Southeast Asia

14. Highlights of the Changes Made 3/17/2010 Grp 9 ODC: Infosys Restructuring 14

15. Q2: Judging the effectiveness 3/17/2010 Grp 9 ODC: Infosys Restructuring 15 Too premature to judge Actual Views Clear focus on US and non US markets helpful Consulting being given more importance with middle level managers being made part of it Specialized training for Europe market – Language, Culture

16. Thankyou. Questions… ? 3/17/2010 Grp 9 ODC: Infosys Restructuring 16