International Market LeadershipQuestion 1: Examine and comment on the factors that drove Infosys to develop its model for IT service delivery. Explain the working of GDM in detail. One of the main criteria for any company to develop its own internal or proprietary service is to differentiate itself from the competition. Many times the reason for the need to differentiate is due to customer requests. However, in the case of Infosys, not only service requirements from customers were important, but also an extremely high level of customer service and anticipation of customer needs. The case presents Infosys as a very proactive organization, meeting customer needs and anticipating subsequent needs before the competition. A central theme in service differentiation was the ability to develop customized products of higher quality at lower costs than others. A key aspect, however, was their ability to locate the necessary service centers in the exact location: at the customer site, in the vicinity of the customer site and/or truly offshore – a location with access to highly competent staff but at lower costs than others. . Company officials indicate that work can be done anywhere, leaving freedom within Infosys to determine where work can be completed at lower costs or with spare capacity or with special skills (Infosys, 2010). They have used global development centers to build a broad pool of knowledge and skills capable of multitasking on more than one project at the same time, thus using peaks and valleys in demand to their advantage. A “valley” of work volume from one client created the opportunity to react to the “peak” of work from another, thus creating a stable, consistent workforce ready to… middle of paper… should prove invaluable in the coming years. Once its value proposition has been established, the company may now demand a higher price for its services. This allowed the company to continue business as usual, but increase profits due to the reputation it had earned as a global leader in its industry. References Deresky, H. (2008). International Management (6th ed.). New Jersey: Upper Saddle River.Fryer, K., & Gothe, M. (2008, January 15). Global software development and delivery: trends and challenges. Retrieved May 13, 2010, from IBM DeveloperWorks: The Rational Edge http://www.ibm.com/developerworks/rational/library/edge/08/jan08/fryer_gothe/index.html Gantt, H. L. (1910). Work, wages and profit. The engineering magazine. New York.Infosys. (2010) The Global Delivery Model, accessed 12 May 2010 from http://www.infosys.com
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