The Global Delivery Model (GDM) of Infosys Explained

Infosys is one of the global leaders with its presence in over 50 countries and around 130 development centers in the world. There are over 3,14,000 employees in the organization with over 200 offices spread across the globe. It is also a globally certified, top employer. Headquartered in Bengaluru, the IT Services and consulting company has become the 2nd most valuable Indian brand. The company manages thousands of projects with excellence. Let us get insights into how Infosys sources its skill power to several locations around the globe and manages its project to create value for its clients.

Infosys - The Startup
Milestones Achieved by Infosys
Infosys Business Model
Infosys Global Delivery Model
Infosys Partnership Strategy
Infosys Global Presence
Infosys Acquisition
Revenue Generation Model of Infosys

Infosys - The Startup

The founder of Infosys is N.R. Narayana Murthy. He started the company in 1981 with only 10,000 rupees in his hand, borrowed from his family and six of his co-workers from his previous workplace.

• The company managed without having a computer booth for two years.
• It took them the same two years to get the computer that Mr. Murthy wanted.
• The company could not afford to import data initially.
• One might assume that being one of the company's founders, the first employee at Infosys was Mr. Narayan Murthy. However, it was not Mr. Murthy but N. S. Raghavan who was the first employee.
• The company was on the brink of collapsing after eight years. When one of their founders, Mr. Ashok Arora, left the company in 1989 and handed over the responsibilities to Mr. Murthy.

Milestones Achieved by Infosys

Infosys has achieved many heights till now, some of which are:

• Infosys became the first Indian I.T. company to get listed on NASDAQ (National Association of Securities Dealers Automated Quotations)
• While the world was still trying to overcome the biggest financial scam of 1992, Infosys finally became public in 1993. Its IPO was 13% subscribed.
• It has received the 2021 Frost and Sullivan Strategy Leadership Award.
• The company took a step towards changing its headquarters from Pune to Bangalore in 1983, precisely because Bangalore city was meant to be known as the hub of I.T.
• It was made public in the year 1993, opening the first Iraq-based sales, and won contracts for developing mission-critical software for very high-profile companies like Nordstrom and Nortel; from 1990 to 2001, revenue grew at over 80% per year.
• In 1999, Infosys hired its 300th employee and became the first Indian-registered company listed on the Nasdaq. Its revenue that year reached 100 million US dollars.
• The company now has its presence in over 50 countries, with over four decades of experience in managing the systems and workings of global enterprises.
• Infosys has an arsenal of 260k+ employees and 1,659 trusted clients.

Infosys Business Model

A business model is a company's core strategy for profitably doing business. It includes information like products or services the business plans to sell, its target markets, and any expected expenses. Since its inception, Infosys has been the face of the Indian IT sector. Its business model caters to two categories: IT Consulting and IT Services.

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Infosys Global Delivery Model

In its initial years, Infosys focused primarily on international markets, such as the US and UK. The Global Delivery Model (GDM) was its primary business model. During the 1990s, Infosys concentrated on a few sectors, such as banking and finance, and manufacturing. Infosys' exponential growth is because they charge a lower premium than companies like Accenture and IBM.

Consistent growth is very necessary for any business to maintain its existence. By increasing its per capita revenue, visibility in the business, client portfolio, and changing its investment strategies, Infosys has maintained a consistent growth record.

Infosys Partnership Strategy

Infosys created a unique system that transforms its clients into partners. Their long-term success has been greatly enhanced by this partnership strategy. The investments made by these partners have allowed them to make significant profits.

Infosys Global Presence

The company has built a network of branches across the globe, which allows its services to be provided in many countries. They have branches in the United States, India, Europe, China, Australia, Japan, and the Middle East. The company has 116 development centers, 84 sales and marketing offices, and 18 international offices.

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Infosys Acquisition

Infosys excels at spotting acquisition opportunities. Infosys has acquired several businesses that have helped it to grow. Among them are:

• Expert Information Services (Australia, 2003),
• McClish Systems (Australia, 2009),
• Portland Group (Switzerland, 2012),
• Skava (the USA, 2015),
• Panaya (Israel, 2015) and
• Brilliant Basics (the UK, 2017).

Revenue Generation Model of Infosys

Infosys' revenue generation model is considered one of the top development systems in the IT industry. Among its revenue-generating activities are:

• Enhancing Process - The incorporation of cutting-edge technologies and gathering data from external sources helps them save time and improve their efficiency against their competitors.
• Increasing Profit Margin - Outsourcing their work to offshore branches allows them to increase their profit margins.
• Increasing Reuse – With years of experience, expertise in management systems, and their Knowledge Currency Units, Infosys has an advantage over its competitors.
• Small Steps to Giant Leaps – A Center of Excellence in every business unit has enabled them to fund projects on broader scales.
• Global Delivery Model – Infosys generates approximately two-thirds of its revenues from the North American market thanks to its strategic IT services and professional consulting.

Conclusion

Infosys has become one of the top companies in the I.T. industry. The key takeaways from the company's success story are:

• As a result of the inspiration of the founders, it is one of the most respected companies in the world.
• Setbacks happen, but that does not mean you do not take risks and embrace change.
• Choose a proper business model considering the nature of your business.
• Keep yourself updated with cutting-edge technology to get an advantage over your competitors.
• Having a global presence can help you reach more clients.
• Have a strategy that works the best for you.

The strategy to expand its services in different corners of the world, the acquisition opportunities, creating trust and value for its clients, and a proper profitable business model made the Company grow so huge. Infosys has amplified the potential and opportunities for people and businesses. It is among the most valued Indian companies leading the IT Service industry globally for years.

FAQs

When was Infosys founded?

Infosys was founded in 1981 in Pune.

Who is the founder of Infosys?

N.R. Narayana Murthy is the founder of Infosys.

Who is the CEO of Infosys?

Salil Parekh is the CEO of Infosys since 2018.

What is the revenue of Infosys?

The global revenue of Infosys Limited amounted to about $13.56 billion in FY2021.

What are the companies owned by Infosys?

Some Companies owned by Infosys are:

• EdgeVerve Systems Limited
• Infosys Public Services Inc.
• Infosys BPM Limited
• Infosys Consulting Holding AG
• Infosys Consulting Limited
• Noah Consulting LLC
• Panaya
• Kallidus

Who are the top competitors of Infosys?

Top Competitors of Infosys are:

• IBM
• Globant
• Deloitte
• Accenture
• Tata Consultancy Services
• Wipro Ltd.