Case Infosys Essay

13356 Words Jan 27th, 2011 54 Pages
CASE: SM-151 DATE: 05/16/06

There is no doubt in my mind that five years from now, the Infosys Consulting model will be the standard way of doing things where technology development is done off-site. We are one of the fastest growing IT consulting firms in the world. Our major bottlenecks right now are convincing clients to break with old habits and take a chance on a new, better model and recruiting the right people—top tier talent who understand our innovative approach and fit into our unique culture. —Steve Pratt, CEO, Infosys Consulting.

In January 2006, the five managing partners of Infosys Consulting (ICI), also known to
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However, the company’s success in consulting was constrained due to its limited brand equity, investment allocation and recruiting abilities. Raj Joshi, who drove Deloitte Consulting’s recruiting in India in the late 1990s and then became the founder and CEO of Deloitte’s Offshore Technology Group in India in 2001, approached Kris Gopalakrishnan, the COO of Infosys Technologies, a few times (from 1997 to 2001) to initiate an alliance between the two firms. As Gopalakrishnan explained, a long-term partnership was not something Infosys Technologies was willing to consider: Our belief was that if we subcontracted to somebody else then the Infosys brand would get diluted. Consulting drives downstream work and our objective was to have control of the client account, and so a partnership was really not something we were looking for. We have always believed that joint ventures have very limited life or limited validity when you start competing with one of the partners,

Infosys Consulting SM-151

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as there is an overlap of business with one of the partners, or the long-term objectives of either one of those partners is in conflict with objectives of the joint venture. So, there could have been opportunities for partnering on a project-byproject basis, but there was no way we could see a long-term partnership opportunity with any company because Infosys wanted to be in that space ultimately, and so it would have been in conflict with the

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