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Case Studies

Driving Innovation with Global Sourcing

Our client, a worldwide leader in networking and communications products, has been known for its commitment to technology innovation and thought leadership. Maintaining this leadership position year after year in a rapidly evolving market could be a challenge. While on one hand it has to meet customer demands for best-of-breed technology products, on the other hand, it also has to effectively manage its own operations, spread across geographies. The company, therefore, relies heavily on global outsourcing to control its operational costs and maintain overall efficiency in terms of time-to-market, productivity and revenues.

Business Need
Apart from its core competence in networking equipment, our client provides a range of products for transporting data, voice, and video through networks spread over various distances. The cost of manufacturing such products is quite high. Moreover, the company has to ensure effective integration of services across geographies. The business needs range from continuous innovation in product development to managing customer relationships and cultural differences across locations. Before the company adopted the outsourcing model, it used to mainly rely on contract workers for all its IT-related requirements. This contractual approach was not just expensive, but was also questionable on its level of efficiency and stability.

Partnering with Infosys
The relationship that began about six years ago has evolved from partial outsourcing to an end-to-end strategic partnership. Being a hardcore technology company itself, the client's expectations and standards on technical competence were fairly high. The company initially decided to outsource only a small part of its functions. But as it gained confidence in Infosys' ability to deliver, Infosys became a key partner across all functions like:

IT Support: Production support and all kinds of development and maintenance work.
Product Engineering: This involves development of products on various technical domains such as VoIP, Network Management, Optical and Routing technologies.
Infosys’s team actively participates in creating product blueprints and their realization.
BPO Services: Over the last three years, Infosys’s BPO arm Progeon has been providing complete backoffice support on a number of processes -- order management, customer support, maintenance contracts and other service operations.
Consulting: The impact of this partnership can be seen from the fact that Infosys has gradually moved from handling regular outsourcing work to participating in strategic initiatives and thought leadership through Infosys Consulting.

Infosys' success in managing end-to-end functionality has been powered by its Global Delivery Model. A special Governance Model has also been created to monitor the progress through all these functions. In-house tools are used to track all project plans and conduct regular quality reviews.

The Value Delivered
Over the years, the client has benefited from this relationship in a number of ways:

Product engineering services have assisted in topline growth by designing the products faster in a more cost-effective manner.
Over a period of last 3 years, the Total Cost of Ownership (TCO) has been reduced by more that 45%.
BPO services have taken over a large part of customer management functions. This has helped reduce transaction costs by 40% and increased the number of transactions by 20%. This has helped achieve high level of customer satisfaction for order management making it the only such center across the organization.
Integration of operations and IT has enabled faster implementation of changes, as requirements can be gathered and understood better.
Better utilization and management of resources enables the client to focus on its core competence areas.
Process improvement and technology-enabled initiatives have resulted in overall efficiency and improved knowledge management within the company.

By creating an end-to-end operations management infrastructure, Infosys has not only helped the client squeeze down its costs, but has also helped improve the company's competitiveness by allowing it to focus more on innovation and other long-term strategic activities.

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