Flat World
Why Think Flat
Think Winning in the Turns
Infosys recommends that companies should focus on
- Migrate to a variable cost structure from a fixed cost structure where possible
- Prepare in advance to manage business risk
- Respond faster to business cycles
- Migrate to a Variable Cost Structure from a Fixed Cost Structure Where Possible
Infosys helped a large US bank move to a variable cost structure by using transaction-based pricing models for its retail and mortgage processes such as loan applications, payoff exceptions, escrow and account services. Infosys BPO is handling 22 key processes for the bank, including three million loan applications annually.
Through the transaction-based pricing model, the bank's cost for handling loan applications is directly linked to the number of loan applications handled, complexity of work and the skill set needed to perform the task. This model reduced the client's cost per transaction and converted the total cost from fixed to variable.
Infosys BPO benchmarks productivity per employee and drives improvements in productivity measures, resulting in higher efficiency of operations. The result? When the origination and servicing volumes in the residential mortgage market were decreasing in the United States, the bank could reduce its costs by paying only for the volumes processed. Similarly, when retail account processing volumes went up, the client was able to ramp up quickly.
Learn more about Infosys BPO
- Prepare in Advance to Manage Business Risk
Infosys limited its exposure to dotcom related work to less than 20% of its revenue, in anticipation of a downturn. During the downturn, Infosys hired packaged application experts to build its Enterprise Solutions practice at a time when other companies were laying off talent.
- Respond Faster to Business Cycles
When the European telco industry was deregulated, an Infosys client had to share its network with rivals. Traditionally, such a scenario would be seen as a low point in the telecom industry business cycle. Adopting a novel approach Infosys, however, proposed and developed a "third-party verification service" for network provisioning to competitors. This service meets all regulatory requirements and also helps establish the "bread-crumbs" that a regulator requires for compliance. As a managed service offering, the approach raised confidence among competitors about regulatory compliance, thereby, turning a low point in the industry cycle to the client's advantage.
What is Winning in the Turns? | Discuss Winning in Turns
Press releases
BT and Infosys Technologies Awarded National Outsourcing Association's Innovative Outsourcing Project of the Year
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Blogs
AMR Research wrote about Indian companies setting up numerous near-shore delivery centers in US time-zones. There you have it - India is outsourcing outsourcing. Discuss
In the News
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