CAN Analysis For Infosys
Bhargav Deliwala
Shalin Parikh
EPGCMM-006-06
EPGCMM-006-19
Question 1.: Looking beyond the immediate Ariba e-Procurement System project, what challenging issues related to global marketing does this case pose for Infosys?
Answer 1. Challenging issues related to global marketing as per the case for Infosys are as below.
1) Infosys has successfully increased the number of major IT projects it handles for PFS to 65, but has managed to capture only US $ 30million (i.e., Rs. 1.38billion Indian rupees) in annual business out of PFS annual IT total spend of $1billion (Rs. 46 billion) even though it could ideally handle up to 45 per cent of that total spend.
2) Most of the projects that it had undertaken have been low value added and price sensitive business.
3) Ariba requires an end-to-end solution. If it could win it and deliver a high quality solution, they can gain a greater share of more profitable, high value-added business.
4) They need to show that they can handle something beyond maintenance project.
Question 2. What quantifiable cost savings not specified in project contracts has Infosys delivered to PFS during the past five years?
Answer 2 Infosys demonstrated that they are focused on “Employee productivity” in reducing cost rather than moving the people off shore as was being practiced by their competitors
1) Infosys reduced the no of people operating in five maintenance project from250 to 100 and redeployed the other 150 people on to other projects of PFS with no extra charge which gave them a benefit of the costs of a full-time equivalent (FTE)3 are $8,000 per month (Rs. 368,000) in the US and $3,200 per month (Rs. 147,200) in India, the resource reductions represent a significant benefit for PFS.
2) Under the data corruption prevention subroutine by writing a new comparison algorithm they could reduce the corruption incidents per year from 24 to 0and in the bargain saved cost of three programmers which was an FTE rateof $45 (Rs. 2,070) per
Shalin Parikh
EPGCMM-006-06
EPGCMM-006-19
Question 1.: Looking beyond the immediate Ariba e-Procurement System project, what challenging issues related to global marketing does this case pose for Infosys?
Answer 1. Challenging issues related to global marketing as per the case for Infosys are as below.
1) Infosys has successfully increased the number of major IT projects it handles for PFS to 65, but has managed to capture only US $ 30million (i.e., Rs. 1.38billion Indian rupees) in annual business out of PFS annual IT total spend of $1billion (Rs. 46 billion) even though it could ideally handle up to 45 per cent of that total spend.
2) Most of the projects that it had undertaken have been low value added and price sensitive business.
3) Ariba requires an end-to-end solution. If it could win it and deliver a high quality solution, they can gain a greater share of more profitable, high value-added business.
4) They need to show that they can handle something beyond maintenance project.
Question 2. What quantifiable cost savings not specified in project contracts has Infosys delivered to PFS during the past five years?
Answer 2 Infosys demonstrated that they are focused on “Employee productivity” in reducing cost rather than moving the people off shore as was being practiced by their competitors
1) Infosys reduced the no of people operating in five maintenance project from250 to 100 and redeployed the other 150 people on to other projects of PFS with no extra charge which gave them a benefit of the costs of a full-time equivalent (FTE)3 are $8,000 per month (Rs. 368,000) in the US and $3,200 per month (Rs. 147,200) in India, the resource reductions represent a significant benefit for PFS.
2) Under the data corruption prevention subroutine by writing a new comparison algorithm they could reduce the corruption incidents per year from 24 to 0and in the bargain saved cost of three programmers which was an FTE rateof $45 (Rs. 2,070) per