Case Analysis: Infosys BPO

(Prateek Awasthi- P16003, Srishty Chakraborty- P16012, Vinay Nair- P16035, Nitin Singh P16035)

4C Analysis:
Company: Infosys BPO Ltd. was established in April 2002. With centers in India, the Czech
Republic, China, the Philippines, Poland, Mexico, the United States, and Brazil, the company
employed over 19,300 people. The 87 clients of the company were spread across different
verticals and horizontal services. Besides these, it had a customer facing strategic solution
group. In 6 years, Infosys BPO had transitioned more than 1000 processes with 95% of the
transitions completed within time and budgetary requirements. Consistently recognized by
key industry bodies as a leading BPO provider, Infosys BPO had earned the Level 5 rating for
its e-sourcing capability model by IT Services Qualification Centre of CMU.
Clients: Customers of Infosys BPO start-ups as well as huge conglomerates. By 2010, Infosys
BPO had acquired 87 customers with each engagement helping the firm to learn and expand
its portfolio of capabilities.
Competition: Entrepreneurs, to provide back-end services to clients, as third-party providers.
By 2000, BPO industry gained recognition as a separate industry. Among large players,
WIPRO was the first one to venture into BPO by acquiring Spectramind. TCS & Infosys Ltd.
followed suit through acquisitions and mergers. Accenture, IBM, Hewlett Packard and Dell
also set up their service arms in India.
Context: Infosys BPO is looking to win an engagement with CreditPlus. The firm needs to
decide on best billing model for the engagement (options were FTE based, Transaction based
or Outcome based) and at the same time ensure that it will be profitable. And all this needs to
be done within a strategic framework.

Decision problem: CreditPlus

Whether to go with dedicated resources for each queue or to adopt a common pool
(Stage-wise, Category wise or common pool for all queue)?
Which Pricing model (FTE, transaction based or outcome based) to adopt?
Above decisions are to be taken within a strategic framework for aligning organizations
strategy with service tasks.
 Activity systems chart- Infosys BPO

Training (domain competence), Service Level agreements No of clients: 87. Variety of Processes
Quality calendar and turnaround time (Simple and Complex)

Process migration: Horizontals services:

Planning, Execution, Business platforms,
Steady state Quality - High Customer service
Accuracy of Customization/ Outsourcing, F&A etc.
Flexibility (7 horizontals)
processes
Significant
investments in the Vertical Industries:
initial stages of project Banking, Capital
markets, Insurance
etc. (10 verticals)
Full time equivalent
based billing Delivery
promptness as
Cost Accurate Forecasting
agreed upon in
Layout: Batch SLA and standardization

Resource utilization Productivity improvements and

development of Innovative platforms

Options: Resource requirement

1. Resources dedicated to each of the six queues
2. Use of common pool
a. Stage-wise (Review, Process and settle)
b. Category -wise (Simple or complex)
c. Common pool of resources for all six queues

Evaluation of options: Resource requirement1: (Assumptions)

1. Resources dedicated to each of the six queues:

Assumptions:
o 24 hours working with 3 shifts of 8 hour each.
o 5 days a week working
o TAT excludes weekend
o We have considered Sample arrival pattern includes the forecast error.

1
Analysis is done in attached excel
 Approach:
o Simple task: Using the volume and average handling time from Exhibit 11
we have calculated per day man-hour requirement. Considering three shifts
of 8 hour each and TAT as 1 day, we have calculated the number of
resources required per day. Maximum number of resources required for a
day in the given week will be the allocated number of dedicated resource.
o Complex task: Using the volume and average handling time from Exhibit
11 we have calculated per day man-hour requirement. Considering three
shifts of 8 hour each and TAT as 4 days, we have estimated optimum
resource required based on convergence of man hours pending for two
consecutive weeks.
Total Resource required: 52
2. Use of common pool (Considering same assumptions)
a. Stage-wise (Review, Process and settle)
Approach: For optimum utilization of resources, we have allocated extra resources
from simple task to complex task.
Total Resource required: 43
b. Category -wise (Simple or complex)
We have calculated total man-hours required for simple tasks and complex task.
For simple task resource allocation is done with the approach similar to that of
dedicated queue for total man-hours required.
Total Resource required: 50
c. Common pool of resources for all six queues
We have calculated total man-hours required for simple tasks and complex task.
For simple task resource allocation is done with the approach similar to that of
dedicated queue for total man-hours required. For optimum utilization of resources,
we have allocated extra resources from simple task to complex task.
Total Resource required: 34

Evaluation of Options: Pricing Model (Influence of Pricing model on design and management of
operations)

1. Full time equivalents based billing: It is adopted when forecasting of transaction

volumes is difficult. It is easier for cost benchmarking. Simple to implement. It does
provide any incentive for service provider.

2. Transaction based billing: Transaction demand forecasts would be the major factor in
billing for the project.
o Employees would need to be trained on transaction processing as focus.
o Prior experience, if exists, would be a key determinant of resource allocation for
the project.
o Performance metrics Successful transactions processed per day, Error rate in
transaction processing.

3. Outcome based billing: It involves billing based on the business results achieved
through outsourcing the process to the BPO vendor. Parameters used to measure results
can be increase in profitability or reduction in operational expenses. This kind of billing
 is hard to implement and in case of CreditPlus Independent debt management process
it is difficult to isolate the effect of vendors contribution on clients business results.

Strategic framework:
Strategic Objective:

To add value to clients business by providing

quality, on-time and innovative solutions
ensuring profitability and productivity
improvements

Pricing Model: FTE

Resource allocation: Stage wise Talent building
Since weekly forecast is
Employee will develop Trainings initially across simple
provided by client hence
expertise in respective stage. It and complex tasks in one
transaction volume is difficult
can translate into platform process and overtime across
to forecast
development and processes
standardization.