MCS OF INFOSYS

7/21/2019 MCS OF INFOSYS

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Assignment

no.1

0n

Management

control

System of

Infosys

Submitted to-:

Submitted to-:



Astt. Prof

Ashish

Anshul pardesiMBA th sem.!"#$

Introduction of M%S-:

Management Control System (MCS) is a system which is an

aggregate of machines and people that work toward a common

objective. A system can be described as a series of steps or

phases consisting of an input phase a processing phase and

an output phase. A control system adds measurement analysis

and reporting phases to the system. !utput is measured

compared against a plan analy"ed and then reported back to

the appropriate earlier phases of the system in the form of

positive or negative reinforcement. #n MCS data$information is

typically fed back to managers of the various system phases.

%esponsible managers will then take appropriate action based

on the data$information provided.

Infosys &echnologies 'imited ! Infosys$

#nfosys started in &'& by seven people with S* +,- is today

a global leader in the ne/t generation of #nformation

0echnology (#0) and Consulting with revenues of S* 1.1-2

billion (3+456&+). #nfosys de7nes designs and delivers

technology4enabled business solutions for 8lobal +---

companies. #nfosys also provides a complete range of servicesby leveraging its domain and business e/pertise and strategic



alliances with leading technology providers. #ts o9erings span

business and technology consulting services systems product

engineering custom software development maintenance re4

engineering independent testing and validation services #0

infrastructure services and business process outsourcing.

#nfosys pioneered the 8lobal :elivery Model (8:M) which

emerged as a disruptive force in the industry leading to the rise

of o9shore outsourcing. 0he 8:M is based on the principle of

taking work to the location where the best talent is available

where it makes the best economic sense with the least amount

of acceptable risk.

(ision and Mission

#nfosys; vision is that <it will be a globally respected

corporation. #ts mission is strategic partnerships for building

tomorrow;s enterprise.

)rgani*ation Structure-:

(i) #nfosys in the beginning #nfosys was a start4up founded by =

individuals. >arly days were a constant struggle due to the

dynamic environment. #nfosys; focus was on delivering a single

product based on single technology in a single marketplace.

?ow degree of 5ormali"ation low comple/ity and high

centrali"ation were few of the characteristics.

(ii) @eriod from &''4+--+ #n &'' company lost some key

accounts which led to a drastic change in the overall strategy.

0he period after liberali"ation led to massive growth. #nfosysstarted catering to di9erent market segments and di9erent

clients. #t had to adhere to a new set of guidelines and

streamline process due to the #@! in &''+. #ts structure was

split up into functional units and the @roject Matri/ Structure

was employed within the production unit. 0hese changes lead

to increasing comple/ity moderate formali"ation and moderate

degree of centrali"ation.



(iii) +-- !nwards #nfosys had become too big to carry on

without modifying the e/isting structure so the concept of

decentrali"ation was brought in. 0he company was divided into

#B;s (#ndia Business nits) each #B concentrated on a

particular sector and this made the company more customer4

focused. Managers of each #B were empowered to take

decisions to further the #B;s prospects and within each #B the

project matri/ structure was carried forward. :ecentrali"ed

system with an ability to take uick decisions was built.

)rgani*ation Strategy

& #nfosys has adopted a client4focused strategy to achieve

growth.

+ 5ocuses on limited number of large organi"ations throughout

world.

#nfosys commands premium margins.

2 #ncrease business from e/isting and new clients.

Mar+et Penetration Strategy& Current MarketsD SA and >urope

+ Current @roductsD A:M B@! E@! etc

Mar+et ,eelopment Strtegy

& Few MarketD #ndia Middle4east and Australia

+ Current @roductD A:M B@! E@! etc.

Product ,eelopment Strategy

& Current MarketD SA and >urope

+Few @roductD Consultancy and package implementation

services in relatively growing sectors esp. healthcare life

sciences etc.

Management Style and %ulture





. Integrity and &ransparency: A commitment to be ethical

sincere and open in our dealings.

2. 2airness: A commitment to be objective and transaction4

oriented thereby earning trust and respect.

,. Pursuit of 3cellence: A commitment to strive relentlessly

to constantly improve ourselves our teams our services and

products so as to become the best.

Management Style at Infosys

#nfosys recogni"es the importance of staIng the value of its

human resource. So they put lot of attentions towards theirassets. 0hey haveD4

& ?ong working hours

+ Jigh variable salary

Sti9 dress code policy

2 ?ow package than industrial average.

, >S!@ options

1 %eward system for overtime pay merit par K skilled based

pay.

%hallenges-:

MFCs like Accenture #BM 8lobal Services and >lectronic :ata

Systems have started operating from #ndia and began o9ering

the same o9shore rates as #ndian companies.

& 0he entry of multinationals has put pressure on #nfosys in

terms of retaining talented manpower.



+ #nfosys faced sti9 competition from other #ndian #0 companies

which were adopting new structures.

#nfosys and its 8:M were heavily dependent on S4based

companies. Since the #0 spending of the S companies wasdecreasing and was e/pected to reduce further it could put

#nfosys in a tight spot.

2 #nfosys also faced growing competition from countries like

China and the @hilippines which were o9ering lower wages and

more facilities.

%onclusions-:

#nfosys has been successfully adopting both formal control

systems like planning budgeting and reporting and informal

control systems like goal oriented behavior leading to

improvement in productivity and achievement in organi"ational

change constantly.

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MCS OF INFOSYS