Infosys: Growing Share Of Customer

Business

Group 1
Abhishek Kumar(155004)
Mukesh Kumar Regar(155074)
Nitish Kumar(155081)
Rahul Kumbhat(155103)
 Introduction
 Prairie Four Square Insurance (PFS) is a leading insurance company in USA

 Infosys wants to win Ariba e-procurement project of its existing client, PFS

 This is a “end to end solution” project, involving both consulting expertise and day to day

operational excellence

 Infosys has already established its credibility as an excellent IT maintenance service

provider to PFS, but does not have track record as a solution provider

 Infosys is competing with Merrimac and Excalibur Consulting – Amongst top 15

consulting firms but lack experience in IT maintenance

 This project has long term strategic significance for Infosys as success in this project will

help in gaining larger projects with PFS and other customers

 Problem Statement
 Infosys now has to figure out a strategy and a communication plan to convince PFS

that it is capable of providing end to end solution for the e-procurement project

Objectives
 Reinforcing the benefits of Infosys’s IT maintenance expertise

 Proving Infosys’s consulting capabilities

 Convincing PFS the entire e-procurement project should go to a single vendor

 The Sales Pitch (1/3)
 Highlighting Infosys’s evolution- Briefly describing the four phases of evolution

 First Phase (1980s)- Offshore outsourcing model

 Second Phase (early 1990s)- Maintenance contracts for legacy systems

 Third Phase (late 1990s) – Providing end to end solutions

 Fourth phase (current) – Business domain excellence

 Emphasizing that consulting solution is not new to Infosys and they are doing it a

decade now, since the third phase

 Infosys has surpassed PFS’s expectations in all the three dimensions: quality,

timeliness and reliability

 The Sales Pitch(2/3)
 Highlighting Infosys’s real life success stories for PFS:

 Successfully completed five major re-engineering projects

 Data corruption prevention subroutine

 Record comparison algorithm

 Reduction in disability claim reserves

 In each case it has exceeded customer expectations and delivered increased

employee productivity

 Providing data to validate these claims

 Total Savings of $ 14,961,120 annually

 The Sales Pitch(3/3)
 Benefits of soul sourcing – Zero knowledge transfer time will translate into huge

saving for PFS (5 programmers * 3 months * $8,000 = $120,000)

 Showing specific steps being taken by Infosys to develop in house consulting talent

pool like hiring well seasoned people from top consulting firms and top MBA

programmes

 Taking advantage of PFS vendor management team visit- showcasing its world

class training facilities, successfully completed JAVA projects and meetings with

employees having consulting experience

 Calculations
Table 1: Savings from Re-engineering projects
  Year 1 Year 2 Year 3 Year 4 Year 5
No. of US based employees 250 250 75 0 0
No. of India based employees 0 0 250 100 100
Cost of Employees for the year(In $ mn) 24 24 16.8 11 11
Savings(In $ mn) - - 7.2 5.8 -
Total savings(In $ mn) 13

Table 2: Savings from Data Corruption Prevention Table 3 : Savings from Record Comparison Algorithm
Category ofEmployees Programmers Tech Assistants PFS Workers Monthly Penalty $ 360,000.00
No. of Employees 3 1 125 Probability of penalty being imposed 0.01
No. of Incidents 24 24 24 Amount saved per month $ 3,600.00
Hours involved per emloyee 4 1 4 Annual Savings $ 43,200.00

$
FTE costs per hour $ 45.00 40.00 $ 42.00 Table 4 : Savings from Reduction in disability claims
$ Reduction in cash reserves $ 14,000,000.00
Savings from subroutine $ 12,960.00 960.00 $ 504,000.00 Cost of Capital(%) 10
Total Savings     $ 517,920.00 Annual Savings $ 1,400,000.00

Total Savings per annum $ 14,961,120.00

Thank You