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A Case Study on Infosys Technologies Ltd,

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# "Source: www.infosys.com" A Case Study on Infosys Technologies Ltd, "On Its Business Strategy-IT Alignment" 1.0 ABSTRACT This paper discusses about the company, Infosys and its Business-IT Alignment. I further explored how important it is for the organization before reviewing details of the company's business objectives, goals, vision and business strategy. The company's IT structure and what its capabilities are and whether it is aligned with its business strategy was a paramount goal of this study. The data collected from primary and secondary sources was analyzed by using the strategic alignment framework proposed by Luftman and Brier. Results from my analysis indicated that the IT alignment at Infosys is at an optimum level. Among the main reasons for this achievement is the personal involvement of its founder and Chairman, Mr. Narayana Murthy, in its IT-Business alignment efforts. Arising from the positive effort by senior management, the main key enablers for this company are their efficient management skills and constant development of information systems within the company to complement its strategies to be a market leader. In concluding this study, I agree with Luftman's and Brier's findings that IT strategies are just as important as business strategies and it should be aligned for any company to succeed in a competitive environment. TABLE OF CONTENTS 1.0 Abstract 2 2.0 Introduction 6 3.0 Literature Review 7 4.0 Industry Overview 12 5.0 Company Background 14 5.1 Business Model 17 5.2 Business Strategy 18 6.0 Strategic Integration 21 6.1 GDM Infosys 21 6.1.1 Processes 21 6.1.2 Quality 21 6.1.3 Tools 22 6.1.4 Knowledge Management 22 6.1.5 Program Management 23 6.1.6 Risk Mitigation 24 7.0 Functional Integration 25 7.1 Organizations Infrastructure And Processes 25 7.2 IT Infrastructure and Processes 27 7.2.1 Application Architecture 28 7.2.2 User Experience Architecture 29 7.2.3 Data Architecture 30 7.2.4 Security Architecture 31 7.2.5 Application Management Architecture 32 8.0 Governance Mechanism 32 8.1 Enterprise IT Architecture Governance 32 TABLE OF CONTENTS 8.2 Corporate Governance 32 9.0 Value Chain Framwork of Infosys 33 10.0 Findings from Research 34 11.0 Inhibitors for Alignment 35 12.0 Recommendations 35 13.0 Conclusion 36 14.0 References 37 List of Figures 1. ...read more.


# Figure - 8 - General Diagrammatical GDM Approach (Continued from page 19) Through these services, Infosys enables its clients to fully exploit technology for business transformation, addressing business challenges across different horizontal applications and target vertical industries, its solutions cover a wide range of business areas including e-commerce and e-business enabling, warehouse and inventory management, and customer management for vertical industries including financial services, insurance, retail telecommunication, utilities and manufacturing. I have used the SAM Model from Luftman and Brier's theory to assess the company's Business-IT alignment. (Refer # Figure - 9) The Below discussed Processes are the core processes through which Infosys attains its IT Alignment With its Business Strategies, it further shows us how the company is delivering its business to its global clientele and also puts light on its internal infrastructure on how its internal IS is linked to its business Objective. # Figure - 9 - Streategic Alignement Model. # "Source: http://www.allstream.com/images/services/SIS_diagram2_Eng.gif" 6.0 STRATEGIC INTEGRATION 6.1 GDM Infosys Infosys GDM consists of 6, key Business and IT components. The key components of GDM are as follows: 6.1.1 Processes Infosys robust process-orientation helps it deliver solutions from multiple locations. These processes are defined with clear ownership using the Entry, Task, Verification, Exit (ETVX) paradigm and clearly defined roles and responsibilities. Infosys has continuously benchmarked its processes against world-class standards and models such as ISO 9001-TickIT, SEI-CMM / CMMI, ISO 20000, ISO 27000, AS 9100, TL 9000 and ISO 14001. # Figure - 10 - Process Structure # "Source: http://www.infosys.com/global-sourcing/global-delivery-model/processes.asp" 6.1.2 Quality Infosys Practices the best Quality standards in the Industry. 6.1.3 Tools Infosys' practice project management philosophy is bolstered by the use of robust tools. The Company keeps the largest and most complex projects on track with the following tools: * Integrated Project Management (IPM) IPM is Infosys' web-based tool for engagement management. It facilitates efficient and effective project management and addresses the functionality of a typical professional services automation framework. ...read more.


11.0 INHIBITORS FOR ALIGNMENT * Frequent Changes in Employees Frequent changes in teams as a result of better offers from its competitors might result in delays for project deliverables. * Engagement issues Difficulty in communicating with the outsourcer is usually cited by organizations that are considering offshore outsourcing as the most significant barrier or challenge. For, example communication with Indian vendors, is only a linguistic issue, and In fact it is also a logistical and cultural hurdle. * Currency fluctuation Offshore markets tend to be less secure and present the greatest risks arising from currency fluctuation. This will result in deviation in meeting the strategic objectives of the company as a result of reduction in revenue. 12.0 RECOMMENDATIONS * Frequent Changes in Employees My recommendation to overcome this issue would be to offer frequent training both in domain complicities and latest technologies together with long term carrier plans. This way, employees feel satisfied and updated with the current market requirements which in turn help the company to retain them. * Engagement issues This can be addressed in two ways. By having frequent dialogs with the client and developing an in-house competency incubation centres where in the key employees are given training to meet the Offshore vendor needs. Promote programs to build relationships, as well as bridge gaps across the culture. (Continued from page 35) * Currency fluctuation This can be addressed in two ways. Company using effective hedging practices. Negotiate with clients to compensate its currency fluctuation losses. 13.0 CONCLUSION Infosys is a global leader in IT and ITES services. It has already attained many levels of alignment and it has achieved ISO 9001 certification. Infosys is also a Six Sigma evaluator in its business. As far as the Business IT Alignment is concerned, Infosys is already a CMM level 5 Company. By continuing the best practices it adapted, and by timely governance policies the company should sustain its alignment between business and IT which will give competitive advantage in the marketplace. Word Count: 4,075. 14. ...read more.

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