Infosys
DIAGNOSES presents analyses of the management case by academicians and practitioners
Infosys Technologies Ltd.: Growing
Share of a Customer’s Business
James A Narus and D V R Seshadri
Case Analysis I
Janaki Anant
Principal Solution Architect i-flex solutions Ltd e-mail: janaki.anant@iflexsolutions.com
T
The April-June, 32(2),
2007 issue of Vikalpa had published a
Management Case titled
“Infosys Technologies
Ltd.: Growing Share of a
Customer’s Business,” by
James A Narus and DVR
Seshadri. This issue features responses on the case by Janaki Anant,
Achal Raghavan, Avinash
Mulky, Sudip Nandy,
Shlomo Maital, and
Zillur Rahman.
his case has multiple dimensions of analysis to it. While there is certainly an immediate short-term issue of winning the Ariba® e-procurement project of the existing client, Prairie Four Square (PFS), and gaining an increased share of the customer’s business that the Infosys team is trying to address, there is also an overall long-term strategic issue that needs to be addressed as well – that of the pricing mechanism based on value that needs to be deployed for long-term sustainability and growth of the relationship. This case offers an insight into the various dimensions of moving up the value chain and increasing the economic value of a customer relationship, identifying the differentiation strategy, communicating the positioning effectively, and the impact of local competition in the global scenario.
The case also effectively illustrates the general growth path followed by most Indian software services companies, the issues they face in this progression, the changing scenarios in the global competitive arena, and the relentless pressure to lower costs in a diminishing labour cost arbitrage advantage scenario.
The Case Context: An Overview
Infosys Technologies Ltd. is a $2,979 million company, headquartered in Bangalore,
India, providing full range of software services to a global
Infosys Technologies Ltd.: Growing
Share of a Customer’s Business
James A Narus and D V R Seshadri
Case Analysis I
Janaki Anant
Principal Solution Architect i-flex solutions Ltd e-mail: janaki.anant@iflexsolutions.com
T
The April-June, 32(2),
2007 issue of Vikalpa had published a
Management Case titled
“Infosys Technologies
Ltd.: Growing Share of a
Customer’s Business,” by
James A Narus and DVR
Seshadri. This issue features responses on the case by Janaki Anant,
Achal Raghavan, Avinash
Mulky, Sudip Nandy,
Shlomo Maital, and
Zillur Rahman.
his case has multiple dimensions of analysis to it. While there is certainly an immediate short-term issue of winning the Ariba® e-procurement project of the existing client, Prairie Four Square (PFS), and gaining an increased share of the customer’s business that the Infosys team is trying to address, there is also an overall long-term strategic issue that needs to be addressed as well – that of the pricing mechanism based on value that needs to be deployed for long-term sustainability and growth of the relationship. This case offers an insight into the various dimensions of moving up the value chain and increasing the economic value of a customer relationship, identifying the differentiation strategy, communicating the positioning effectively, and the impact of local competition in the global scenario.
The case also effectively illustrates the general growth path followed by most Indian software services companies, the issues they face in this progression, the changing scenarios in the global competitive arena, and the relentless pressure to lower costs in a diminishing labour cost arbitrage advantage scenario.
The Case Context: An Overview
Infosys Technologies Ltd. is a $2,979 million company, headquartered in Bangalore,
India, providing full range of software services to a global