Global Delivery Model at Infosys
CASE DISCUSSION:
GLOBAL DELIVERY MODEL AT INFOSYS
1.1. What are the key challenges in offshore projects and how does GDM address those? * A globally dispersed workforce creates challenges in communication, which GDM addresses through process structure and tools such as video conferencing, and integrated software for tracking progress, billing, timelines, and deliverables. * Turnover is inherently high in the offshore model and this can cause a brain drain or lack of organizational intelligence. This is solved by the creation of centralized storage of all documents and code associated with a project. Further, benchmarks are established to document best practices and white papers are written to document the organizations intelligence. This information is accessible by all employees. * Work is primarily done by a young and inexperienced workforce which GDM addresses through its knowledge assets and bench marking. * Company can lose control of its IP and risk it getting into competitors hands. GDM has security measures and protocols built in but this risk can never be completely eliminated. * Projecting a ROI from engaging in offshoring proves less straightforward than one would expect. The savings are often not as great as expected. Additionally, organizations frequently underestimate the amount of man-hours that will be required to manage an offshore project. * Contracts seldom cover all conceivable scenarios and there are often misunderstandings between the client and the providing company regarding which services are to be provided under the contract. This can erode expected ROI considerably via unplanned expenses. A strong GDM can minimize these risks but not eliminate them. * Language barriers, differences in the ways of thinking, and cultural differences cannot be mitigated by use of BDM. The GDM is a set of tools and processes used to manage the engagement but the engagement is still performed by people and in an
GLOBAL DELIVERY MODEL AT INFOSYS
1.1. What are the key challenges in offshore projects and how does GDM address those? * A globally dispersed workforce creates challenges in communication, which GDM addresses through process structure and tools such as video conferencing, and integrated software for tracking progress, billing, timelines, and deliverables. * Turnover is inherently high in the offshore model and this can cause a brain drain or lack of organizational intelligence. This is solved by the creation of centralized storage of all documents and code associated with a project. Further, benchmarks are established to document best practices and white papers are written to document the organizations intelligence. This information is accessible by all employees. * Work is primarily done by a young and inexperienced workforce which GDM addresses through its knowledge assets and bench marking. * Company can lose control of its IP and risk it getting into competitors hands. GDM has security measures and protocols built in but this risk can never be completely eliminated. * Projecting a ROI from engaging in offshoring proves less straightforward than one would expect. The savings are often not as great as expected. Additionally, organizations frequently underestimate the amount of man-hours that will be required to manage an offshore project. * Contracts seldom cover all conceivable scenarios and there are often misunderstandings between the client and the providing company regarding which services are to be provided under the contract. This can erode expected ROI considerably via unplanned expenses. A strong GDM can minimize these risks but not eliminate them. * Language barriers, differences in the ways of thinking, and cultural differences cannot be mitigated by use of BDM. The GDM is a set of tools and processes used to manage the engagement but the engagement is still performed by people and in an
References: By Preiti Sharma Shahane, TNN Jun 22, 2006, 12.00am IST (http://articles.economictimes.indiatimes.com/2006-06-22/news/27455315_1_global-delivery-model-gdm-software) last visited on January 15, 2012 Making Global Delivery Work by Andrew Brabban, sourcing focus.com (http://www.sourcingfocus.com/site/newsanalysisitem/4045) last visited on January 17, 2012 (http://www.sourcingmag.com/content/c061120a.asp) last visited on January 17, 2012 Oshri, Ilan, Kotlarsky, Julia, Willcocks, Leslie P., The Handbook of Global Outsourcing and Offshoring London: Pelgrave, 2009 4 Steps to Secure IT Outsourcing by Bar Biszick-Lockwood (http://sourcingmag.com/content/c050824a.asp) last visited on January 17, 2012 Infosys 3.0 is a strategic plan for future growth: SD Shibulal, CEO, Infosys, ET Now Aug 22, 2011, 04.13pm IST (http://articles.economictimes.indiatimes.com/2011-08-22/news/29915188_1_clients-sd-shibulal-infosys/2) last visited on January 16, 2012