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Infosys 3.0 : Building Tomorrow’s Enterprise
Group 8
Dhiraj Bonda (1301-067)
Oli Ghosh (1301-144)
Sounak Basu (1301-221)
Jai Shankar Rai (1301-348)
Praveen Shrivastava (1301-386)
Poornima Sharma (1301-548)
WHY LEADERS QUIT?
Business Consulting, Technology services and Outsourcing solutions
headquartered at Bangalore
Founded in 1981 by Mr. N R Narayana Murthy and six engineers in Pune
with an initial capital of Rs.10,000
73 offices and more than 160,000 employees, 798 clients across 30 countries
Revenue of US $7 billion (as on March 2013)
Infosys BPO Ltd. founded in April 2002 is the business process outsourcing
division of Infosys. Employs nearly 23,000 people in various countries
across the world like Eastern Europe, Latin America, china, Philippines
and India
Fifteen 100 million dollar clients, with 85 percent of revenue from NAM
and Europe
Ranked 19th amongst the world’s most innovative companies by Forbes
About Infosys:
Acquisitions Post Millennium
2003 Australia based IT service provider Expert Information Services for $23 million
2009 Infosys BPO acquired Atlanta based McCamish systems for about $38 million
2012 Australia based Portland group which provides category management services
for $37 million
Switzerland based Lodestone management consulting firm for $350 million
Gave access to around 200 clients across manufacturing, automotive and life
sciences verticals
Prominent Executive Leadership
Mr. N. R. Narayana Murthy, Founder, Executive Chairman of the Board
Mr. S. Gopalakrishnan, Co-founder, Executive Vice Chairman
Mr. S. D. Shibulal, Co-founder, CEO, Board Member, Managing Director
Ms. Nandita Gurjar, Senior Vice President Group Head of Education and
Research Member, Executive Council
Mr. Srikantan Moorthy, Senior Vice President, Group Head of Human
Resource Development Member, Executive Council
Recent Performance Highlights:
FY2013-14 Q2 Revenue Rs.12,965.00 crores
Nearly 98 percent of the revenue comes
from the existing clients as on Q2 FY14
Q2 Attrition at 17.30% highest in at least 2 years
Employee strength : 193,148
Utilization Rate: 77.80% ex-trainees,
73.70% including-trainees
Sales per employee: 671,247
Higher attrition rate is generally viewed as a sign of dissatisfied employees leaving the
company
BFSI34%
Retail24%
Telecom8%
Manufacturing
23%
Others11%
Q2 Revenue
Talent Acquisition
On-campus recruitment: Engineering graduates, Management graduates
Off-campus
Walk-in Interviews, Employee Referral
Job fair, Online Job Portals
Social Media
Training & Development
Largest Corporate Technical University in Asia
23 weeks foundation program for fresh engineering graduates includes generic
online learning program and specific technology
World class Facility located in Mysore
A corporate training team is formed for training lateral hires:
Band B, Band C & Above
Knowledge Management systems & Professional Certifications
Instep, Campus Connect
Infosys Leadership Institute
Set up in 2001
Completely owned by Infosys top management executives
Internal Synergy Model
9 pillars of Leadership Institute
Holistic approach in 360 degrees Feedback systems
Personality Development Assignments
Infosys Culture Workshops
Strategy Networking Skills Development
Leadership skills Training and Assignments
Systemic Process Learning and Development
Exercise Learning
Feedback Intensive Programs
Social Community Empathy
Building Tomorrow’s Enterprise
Infosys 1.0: Global Delivery Model
Infosys 2.0: GDM in all verticals
Infosys 3.0: Tomorrow’s enterprise with emerging technologies mobility – mobile
applications & platforms, Social & Big Data & Data Analytics applications and
Cloud Computing services
Problems
A. Slower revenue Growth
B. Issues in Leadership
Company CEO Mr. S D Shibulal faced tough questions from Mr. N R Narayana
Murthy in the recent annual strategy meet
Approval Rating – conducted by Glassdoor, website that lets employees vote on
their CEOs
Mr. Shibulal 51 percent - Infosys
Mr. Chandrashekaran 88 percent - TCS
Mr. Francisco D’Souza 92 percent - Cognizant Technologies
Mr. TK Kurien 78 percent - Wipro Technologies
Mr. Anant Gupta 68 percent - HCL Technologies
C. Lack of Aggression
Stream of Exits at the Top
Mr. Subhash Dhar Head of Sales and Marketing
Mr. Ashok Vemuri Board Member, head of Americas & global head of manufacturing
and engineering services resigns to join as CEO of iGATE
Mr. Mohandas pai board member and HR Director
Mr. Sudhir Chaturvedi Head of Financial Services US
Mr. Basad Pradhan Head of Global Sales Operations
Mr. Humberto Andrade, head of Latin America BPO operations
Mr. Stephen Pratt, executive council member and head of utilities &
resources for North America
Mr. Paul Gottsegen, vice-president & chief marketing officer, resigns to join
Mindtree as chief marketing & strategy officer
Mr. Subrahmanyam Goparaju, 25-year veteran, senior V-P, head of Infosys
Labs & executive council member
Mr. V Balakrishnan, board member, head of Infosys BPO, Finacle, and
India Business Unit & chairman of Infosys Lodestone
Reasons
Infosys losing ground in core markets
Transitional stage steered by Mr. N. R. Narayana Murthy
Lack of Clarity in the strategic direction
Exits triggering a wrong message leading to mid and low level employees exit from
the company
Uncertainty at the top management and lackluster results
Current Primary Focus
Improving margins, getting large deals, investing in improving investor and
employee confidence
Most stakeholders remain unconcerned due to the company’s focus on entering a
crucial phase
Mr. Murthy’s focus on “Meritocracy”
Strength of 500 employees and professional Managers in Tier I,II and III levels can
be trained Leaders.
Recommendations
Leadership should be a mix of both professional managers and founders family
members (all four CEOs till now have been from the 7 engineers who founded the
group)
Strategy is always a Long term and would take 3-5 years to show results, should be
aggressive in making large deals, cutting costs improve margins, acquisitions to get
access to specific industry in geographies which synchronize with the company’s 3.0
strategy
Top management in the Company is reasonably wealthy and their purpose to work
should not be diluted
Using Infosys Leadership Institute to train and develop the existing Professional
managers into Leaders, expansion of Executive council
Imparting Leadership skills into every Infoscian by developing tailored programs
into the regular training and development systems
Increasing the budget for S&M as current 4.8 percent of revenue is very low when
compared to peers average of around 13 percent