INFOSYS TECHNOLOGIES
LTD GROWING SHARE OF A
CUSTOMER
Prairie Four Square Insurance Proposal
Presentation to Prairie Four Square Insurance to Implement
Arabia e-Procurement System
Presented by:
Aditi Sharma - 08PGDM-PT 04
Amandeep Singh - 09PGDM-PT 02
Ashwini Sinha - 09PGDM-PT 10
Divay Makkad - 09PGDM-PT 16
Prashant Akhawat - 09PGDM-PT 28
Background
Company: Infosys Technologies Limited
Year of Formation: 1981
Business: IT and Consulting Services
Employee Strength : 17000
Geographical Presence: 8 Dev. Centers and 24 Marketing offices
Annual Sales : $ 750 million.
Net Profits : $200 million
BCP/DR Facility: Mauritius
Chairman: Narayana Murthy
Vision: “To be a globally respected corporation that provides best-of-
breed business solutions, leveraging technology, delivered by best-in-
class people.”
Mission: “To achieve our objectives in an environment of fairness,
honesty, and courtesy towards our clients, employees, vendors and
society at large.”
Often termed as “Microsoft of India”.
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Prairie Four Square Insurance
Total IT Spend of PFS : 1 billion USD
Current Revenue of Infosys by PFS: $ 30 million
Total Project at of Infosys at PFS: 65
PFS is leading providers of individual life, group life, medical, dental, and
long term care and disability insurance in the US.
Mission statement: to provide reasonably priced, reliable, long term shelter
and security for families.
Customer perception: fair prices, personalized, friendly service, reliable in
the time of need.
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Five Year Track Records
Projects Cost Savings ($)
Reengineering Projects Assignment 33,600,000
Data Corruption Prevention Subroutine 518,060
Record Comparison Algorithm 43,200
Reduction in Disability Claims Reserves $2,800,000.00
Total Cost Saving 36,961,260
Total Saving of 37 million USD in 5 years.
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Saving to PFS from re-engineering Projects
Total
Costs of Project
No. of FTTE Cost if the
Projec ($)/month project
t for No. of Total Project personnel
Perso project FTE No. of Cost in are divided
nnel Costs of staff workin FTE client in US and
Requir FTTE based in g in working country/pm India/ pm Savings/m Annual
Year ed ($)/month India the US in India ($) ($) onth ($) Savings ($)
1
2 250 8,000 3,200 250 0 2,000,000 2,000,000 0 0
3 250 8,000 3,200 75 250 2,000,000 1,400,000 600,000 7,200,000
4 250 8,000 3,200 75 100 2,000,000 920,000 1,080,000 12,960,000
5 250 8,000 3,200 75 100 2,000,000 920,000 1,080,000 12,960,000
150
Total
Savings
in Four
Years 33,120,000
Savings
to other
PFS
projects 480,000
33,600,000
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Savings to PSF Data Corruption Prevention Subroutine
No. of incidences
Time of corruption per
Cost Heads Number (hours) FTE ($) annum Cost ($)
Programmers 3 4 45 24 12,960
Technical Support
Person 1 1 40 24 960
Idled employees 125 4 42 24 504,000
Reconstitution of the
corrupted data
(seconds) 1 15 0.39 24 140
518,060
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Summary of Savings to PSF as a result of maintaining a small
Disability Claims Reserves & Records Comp. Algorithm
Disability Claims Cost of
Year Reserve Capital Total Savings
1 14000000 10% $1,400,000.00
2 14000000 10% $1,400,000.00
Total
Savings $2,800,000.00
Saving of PSF due to Record Comparison Algorithm
Cost Heads Number Amount ($)
Penalty for non-compliance to Insurance Commission
norms 1 360,000
Expected payoff 43,200
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Average Performance Metrics on Maintenance Projects – 5 yrs
Parameter Performance Dimension PFS Target Infosys Result
requests delivered with zero
Quality defects 90.00% 97.10%
delivered defects per 1000
person hours 4.9 3.2
requests delivered on time
Timeliness 91.00% 99.60%
efforts estimation accuracy
83.00% 98.10%
Uptime on Infosys maintained
systems 94.00% 99.90%
Reliability Abnormal ending of program ratio
across Infosys maintained
systems 1.80% 0.20%
1. 56% Record comparison efficiency
2. Reduced processing time: Estimated to around $200 per workstation
3. Enhanced Productivity by additional processing of 18000 jobs
4. Streamlining and re-engineering claims submission process as well as claims payment
process leading to 10% reduction in cost of capital on the cash reserves.
5. Resource Reduction and no extra charge.
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Competitive Analysis
Strengths of Infosys Competitors - Excalibur and
Merrimac
Well versed with PFS Systems having worked Tendency to work on huge/grand projects
on more than 65 projects in last 5 years. which indicate that micro level details might
get overlooked.
Proven quality, reliability and timeliness. Non-competitive labor rates
Exposure in maintenance work will lead They have a tendency to avoid low value
shorter ‘learning curve’ thus leading to and low profit projects.
efficiency and productivity.
Recruitment of highly talented peoples from Apprehensions in mind of PFS people
the top consulting firms as well as from the top about low ball price quote from the 2
B-Schools worldwide. consulting firms.
Strategic move to strengthen skills of
consulting resources by in-house trainings to
secure higher value added and profit business.
Experience with Ariba project with an
achievement of cost saving of $100,000.
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Project Proposal
Project to be implemented in multiple phases
Purchasing Process Redesign
Vendor Selection and Training
Package Customizations
Integration with PFS Enterprise Requirement Planning system.
Installation and “burn-in”
Cost of Implementation : $2 million
Maintenance Per Annum : $18 million
Why Infosys ?
Infosys was able to provide benefit of 37 million USD in last 5 years to PFS
already and has proven itself in Cost, Quality, Reliability and Capabilities.
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Infosys benefits
Infosys had initiated 3 end to end e-Procurement System Ariba projects
within an year (2 retailers and 1 healthcare).
Incase of Healthcare Infosys was able to achieve saving of $100,000 per
year by switching the company’s change order procedures.
Support from Infosys senior management by assigning team support
including Enterprise Solutions Group.
Proven quality of Infosys at PFS.
Experience in BPR with in-depth knowledge of micro level.
Experience with Data Corruption Prevention and productivity improvement.
Innovation and Business Process Understanding.
Sole Sourcing benefits.
Great leadership of Infosys.
Elimination of non core activities
Pool of knowledge workers and experts
Improved quality due to process orientation
Proven track records
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Value Analysis – 3 Strong Business Drivers
Reduce Operating Costs
Reduce Capital Investments
Cost
Key Cost Related Lesser Learning Curve and Experience with Arabia
Drivers Downsizing Requirements
Intelligence in Competitiveness
Focus on Core Business
Compentency Focus
Gain Access to technology and not in company
Customer Loyalty
Key Competency Gain Access to needed Skills
Related Drivers Create additional Capacity and backup capabilities.
Experience with Ariba e-Procurement Project
Aligh with Policy/philosophy/ culture
Increase flexibility and responsiveness
Increase Speed to market
Key Revenue
Revenue
Improve quality
Related Drivers Meeting SLA
Reduce customer response time
Revenue growth
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KT Time Cost Saving
The total knowledge transfer time that PFS can expect to save from sole sourcing the
Ariba e-procurement Systems project is as below:
No. of programmers required: 5
Time required to train programmers on Ariba e-Procurement system (installed by another
vendor): 3 months
Cost of hiring the programmers: $8000 per month (client location: Dallas, US rates
apply)
Total savings: 5 x 3 x 8000 = $120,000
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