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Business Challenge: Reduce Cost Structure
Automotive companies leverage technology to optimize operations, re-design business processes and eliminate waste.
Infosys helps automotive companies adopt technology to deliver tangible results, including:
- Up to 35%-50% cost reductions in applications development and maintenance while drastically improving quality metrics
- Reduced product development costs by 36%-52% while delivering increased quality
- Reduced product development cycle time by 25%-39%
- Improved designed products in terms of costs and performance
Business Need
Price wars and intense competition are eroding the profitability of OEMs in developed markets. In price-sensitive emerging markets, OEMs must price lower to compete. Thus, the focus is to lower not costs, but cost-structures, to achieve sustainable cost-effectiveness.The cost effect is also felt by Tier-1 suppliers. To ensure product differentiation, OEMs demand innovation from their suppliers. Simultaneously, OEMs expect their suppliers to continuously reduce costs. Suppliers have also turned to mergers, acquisitions, low cost sourcing, and resource optimization to address these demands.
Regulatory pressures have a strong influence on the business – benefits, retirement, Sarbanes Oxley and other legal compliance requirements continue to increase costs.
Achieving ongoing cost reduction while improving performance continues to be a challenge for the automotive industry.
Infosys Advantage
Infosys partners with automotive clients to lower their cost-structures through the redesign of business processes and adoption of technology. We have in-depth expertise and rich experience in the automotive sector, enabling us to provide solutions in the most complex and challenging environments.
Our offerings address your cost imperatives:
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