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Written Case Study Analysis

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Assessment 4:
Written case study analysis
30% of the final markDue Week 12 Sunday 2nd Oct3,000 words

Description

A case study will be provided related to a management issue. Students are to use case study analysis method to answer five (5) questions related to the case, providing analysis and recommendations for the case.

When

The report is due to be submitted by Sunday 2nd October, 11:59pm. This is to be submitted via the Turnitin similarity checking link.

Format

Provide a case study analysis of the case provided. Answer the five (5) questions provided that relate to the case. Each answer to the question is between 550 to 650 words each. You may use additional external references to support your answer. Use in-text referencing and a reference list Questions to be answered for the Case Study”

  1. Using concepts and theories from Chapter 12 of the textbook, how has Nilekani used human resources to attract the best talent and build strong teams at Infosys?
  2. Managing diversity is a strength of Infosys and Nilekani to manage at home in India, to move into new markets and managing politics. Using the concepts and theories of Chapter 13 from the textbook analyse how Infosys and Nilekani have been able to manage diversity.
  3. Which leadership theory as set out in Chapter 15 of the text book, would be most helpful in guiding Nilekani‘s transition from private to public sector leadership? Explain.
  4. How does Nilekani display Emotional Intelligence in his ability to lead Infosys through the many changes?
  5. Motivating staff is a key success factor for Infosys. Using concepts and theories from Chapter 16 of the textbook, evaluate how Infosys has successfully grown and moved internationally.

Table of Contents

  1. Introduction………………………………………………………………………………………………………… 3
  2. Nandan Nilekani – Early Years………………………………………………………………………………. 4
  3. Nandan Nilekani – Leading Infosys………………………………………………………………………… 5
  4. Nandan Nilekani – Public Life……………………………………………………………………………….. 7
  5. Nandan Nilekani – Leading UIDAI………………………………………………………………………… 7
    1. Political Challenges………………………………………………………………………………………………….. 9
    1. Other Indian Challenges…………………………………………………………………………………………… 9
    1. Opposition to UID – Data Privacy Concerns………………………………………………………………. 9
    1. Technological Challenges……………………………………………………………………………………….. 10
    1. Reaching the rural areas – Rebranding UID………………………………………………………………. 11
  6. The French Experience – Sharing best practices……………………………………………………… 11
  7. Questions for discussion……………………………………………………………………………………… 22
  8. Additional Readings and References……………………………………………………………………. 22

Exhibit 1 – Two Dimensions of software projects………………………………………………………….. 12

Exhibit 2 – Infosys – Company Profile – 2010………………………………………………………………. 12

Exhibit 3 – Infosys Timeline……………………………………………………………………………………….. 13

Exhibit 4 – Infosys Historical Stock Price Chart……………………………………………………………. 13

Exhibit 5 – Nandan Nilekani – Achievements and Awards……………………………………………… 14

Exhibit 6 – Previous unsuccessful efforts by the Government for unique identification………. 14

Exhibit 7 – Nandan Nilekani at the unveiling of the new UID logo…………………………………. 15

Exhibit 8 – Leadership in India……………………………………………………………………………………. 15

Exhibit 9 – Features of the UID project……………………………………………………………………….. 16

Exhibit 10 – India at a Glance…………………………………………………………………………………….. 17

Exhibit 11 – India on the World Map…………………………………………………………………………… 18

Exhibit 12 – Management Challenges – Private versus Public Sector………………………………… 19

Exhibit 13 – Maturity levels in the CMM……………………………………………………………………… 19

Exhibit 14 – List of organizations/bodies opposing UID Project across India……………………. 20

Exhibit 15 – National identification number used by the governments of many countries……. 21

The service business is very strategic, complex, sophisticated … We are using the knowledge of business, processes, technology, consulting and creating solutions that make global companies more profitable and

competitive…You don’t ask Intel why they produce chips. You don’t ask Dell why they don’t make operating systems. In every business, every company chooses the playpen in which they wish to operate.

–       Nandan Nilekani, in 2006 then CEO of Infosys in an interview to CyberMedia news.

As one of the biggest projects happening in the world, the UID project is generating a lot of excitement.

Nandan Nilekani, now Chairman of the Unique Identification Authority of India (UIDAI)1

It is welcome news since this is a significant and complex infrastructure project. A person like Nandan can help bring in lot of new business practices and transform the process. I think the appointment is to do with leadership, and obviously his technical background helps.”

–       Som Mittal, President, Nasscom

1.          Introduction

In November 2009, Nandan Nilekani (Nilekani), 54, IT czar, a lead architect of India‘s outsourcing boom and Chairman of India‘s Unique Identification Database Authority was selected for the ‗Legend in Leadership Award‘. He became the first Indian to receive Yale University’s top honor. (See Exhibit 5 – Nandan Nilekani – Achievements and Awards on page 14)

Around the world, Nilekani is recognized as one of India‘s most successful software entrepreneurs. He co-founded India‘s technology bellwether Infosys Technologies2 (see Exhibit 2 – Infosys – Company Profile – 2010 on page 12) as a technology start-up in the 1980s – now India‘s premier company in the IT sector and one of the biggest software exporters from India. From March 2002 to June 2007, Nilekani was CEO and Managing Director of Infosys and previously held the posts of the President and Chief Operating Officer. He led Infosys‘ global delivery model3 with the company’s revenues growing from Rs.3,604 crores4 to Rs.13,893 crores and the headcount scaled up from 10,700 people to over 72,000.

Nilekani always believed India could become the largest and the fastest growing democracy on the planet, particularly so, with its forays into the information technology sector. In January 2006, Nilekani became one of the youngest entrepreneurs to join 20 global leaders on the World Economic Forum (WEF) Foundation Board. In 2009, he was invited by the Indian Prime Minister, Dr Manmohan Singh, to head the Government’s Unique Identification project (UID project), which aims to provide identity to a billion citizens. Nilekani was given the

1 Nandan Nilekani | We will issue first set of UIDs by February 2011. (2010, April). Retrieved from Livemint.com: http://www.livemint.com/2010/04/04213257/Nandan-Nilekani–We-will-issu.html?h=B

2 Infosys is a publicly held company offering information technology consulting and software services to Fortune 1000 companies. Infosys was started in 1981, by seven professional entrepreneurs (Nandan Nilekani, S.Gopalakrishnan, K. Dinesh, S.B.Shibulal, N.S.Raghavan, Ashok Arora and Narayana Murthy) with an equity capital of Rs.10,000 (USD 250). By 2001, Infosys was one of the biggest exporters of software from India. It became the first Indian company to follow the US Generally Accepted Accounting Principles (GAAP) disclosure norms. In 1999, Infosys was listed on the NASDAQ.

3 Infosys pioneered the Global Delivery Model (GDM) to ensure the distribution of application and business process lifecycle activities and resources, while ensuring their integration.

4 1 crore=10 million, Rs=INR=Indian Rupees, 1USD=Rs 44 (approx.)

rank of a cabinet minister after he resigned as a board member of Infosys. The UID project was one of the most ambitious projects of the United Progressive Alliance (UPA) led Indian government to address citizenship and security concerns. With a unique ID, the Government could ensure the benefits reached the targeted population of its flagship schemes and that any gaps in the schemes were removed. (See Exhibit 9 – Features of the UID project on 16) Enrolling nearly 1.20 billion residents in India (visiting nearly 240 million households) and dealing with corruption, while implementing various government programs was a major challenge. Could Nilekani, a man of technology who was prone to measure software projects in great detail, successfully lead a government program, a social project with India‘s inherent challenges?

2.          Nandan Nilekani – Early Years

“I come from an entrepreneurial background of looking for opportunities and also frequently being told that something is not possible.”

Nandan Nilekani5.

“We were the guys who started Mood Indigo6. And I personally organized two of them. Once you have done that, I think you know all about management. At least, all that I know about management and leadership I learnt in Mood Indigo.”

Nandan Nilekani in 20047.

On June 2, 1955 Nilekani was born in Bangalore, Karnataka, South India as the younger son of Durga and Mohan Rao Nilekani. His father was a private sector employee, a Manager in Minerva Mills, who subscribed to the Fabian Socialist ideology, an ideology that also influenced Nilekani during his early years. He grew up in a very modest environment with typical Indian middle class values.

Nilekani was exceptionally brilliant and had good leadership qualities. He graduated from Indian Institute of Technology (IIT) Bombay – B.Tech (Electrical Engineering). In 1978, he joined a Mumbai-based software group Patni Computers where he was interviewed by N R Narayana Murthy (co-founder of Infosys). In 1981, after three years, Nilekani and his colleagues at Patni quit the company to form Infosys Technologies Ltd. Nilekani co-founded Infosys with six colleagues and US $250 in start-up capital. From 1981 to 1987, he managed the marketing and development efforts of Infosys in the U.S. In 1987, he came back to India and based himself in Bangalore. (See Exhibit 3 – Infosys Timeline on page 13)

http://www.yorku.ca/yfile/archive/index.asp?Article=12616

6 Mood Indigo is the annual cultural festival of Indian Institute of Technology (IIT), Bombay held in December.

7 I learnt leadership at Mood I: Nandan Nilekani. (2004, December 18). Retrieved June 2, 2010, from Rediff.com: http://www.rediff.com/getahead/2004/dec/18moodi.htm

3.          Nandan Nilekani – Leading Infosys

“The Global Delivery Model that has been at the heart of our execution is more than just a way of getting work done offshore. It is a genuine business innovation that delivers a superior value proposition at higher quality and lower cost. By leveraging global resources and global strengths, it creates a new degree of freedom.”

Nandan Nilekani, President, CEO and Managing Director, Infosys, in 20068

In March 2002, Nilekani took over the responsibility as Chief Executive Officer of Infosys Technologies from the legendary (and co-founder) Narayana Murthy. Nilekani had the tough job of transforming a $1-billion Indian software company to a truly global corporation. The story of IT in India was full of time and cost overruns and project cancellations. Multinational vendors such as IBM and Accenture had even stated that they did not see Indian companies participating in deals in excess of $100 million9.

Nilekani knew he had to continue to bring a discipline in how things were done – excellence in execution. He emphasized values like doing things on time, on budget, and using high quality people. Nilekani also knew that managing a company as a single entity with more than 25,000 employees (at the time) was difficult. This led to Infosys transforming its business around specific verticals such as healthcare, retail, and banking. He believed a head of an organization could give a personal touch by subdividing the business into manageable smaller entities. This would also lead to creating specialists in industry verticals and not only a business plan for the company but a business plan for each of these groups with hard numbers.

Another challenge for Nilekani was leading a multicultural company and establishing a global delivery model. At the time, Infosys had more than 600 employees (non-Indian) from more than 30 nationalities across the world. He had to build the diversity as well as managing it into the Infosys global delivery model.

In 2004, Nilekani responded to a question on what challenges Infosys faced ahead. He said,

The first is managing scale, the second managing risk, the third managing growth with differentiation, the fourth, the whole process of becoming more multicultural and diverse and the fifth is the outsourcing challenge. Lot of these complex issues have to be managed and we have to navigate through all that….this is a model (the global delivery model) which leverages on the power of modern technology such as broadband to reengineer value chains from a local activity to a global activity, from a local resource pool to a global resource pool and local capacity utilization to a global capacity utilization.”

Software project management (see Exhibit 1 – Two Dimensions of software projects on page 12) at Infosys is a highly evolved process and the company successfully executed hundreds of IT projects. In 2002, Infosys was assessed at level 5 (the highest level) of the CMM Integrated

8 Scripting a Success Story, India Now, January 19, 2006

9 Thiagarajan, K., & Kulkarni, V. (2004, March 21). Enough resilience in the global delivery model — Mr Nandan Nilekani, CEO and Managing Director, Infosys Technologies. Retrieved June 03, 2010, from The Hindu: http://www.thehindubusinessline.com/iw/2004/03/21/stories/2004032100530600.htm

(CMMI)10 for offshore and onsite operations. It was the first Indian company to do so. In 1999, Infosys had already become the 21st company in the world to achieve a CMM Level 5 certification. (See Exhibit 13 – Maturity levels in the CMM on page 19)

For successive years in 2001 and 2002, Infosys had been adjudged the ‘Best Company to Work For’ but had lost this position in the next couple of years. In 2005, under Nilekani‘s leadership, Infosys won ―India’s Best Managed Company Award‖ based on a study conducted by Business Today and A.T. Kearney. Infosys was placed ahead of 13 finalists. Infosys had around 36,000 employees at the time and it had never missed a target in 48 quarters. It clearly had a planning process that was top-notch. But a humble Nilekani believes himself to be an ‗accidental entrepreneur‘. He says, being at the right time, in the right place and with the right people did the trick for him11.

Nilekani always felt that India needed a company based on middle class values where ethics, courtesy, honesty, and fairness were important features, where people were treated as human capital and were given a chance to participate in management, in ownership. Nilekani and other founders wanted to create a respected and an admired company, a company that practiced very ethical standards of business conduct. When Infosys became successful based on these values, he was proud of the fact that Infosys had not paid bribes, had not done anything unethical to be in this position. (See Exhibit 8 – Leadership in India on page 15)

(Continued on next page)

10 CMMI is a model released by the Software Engineering Institute (SEI), US and is an enhanced version of the Capability Maturity Model that integrates various other frameworks created by SEI. The Capability Maturity Model (CMM) is a widely adopted set of guidelines (framework) for evaluating and improving an organization’s software development processes.

11 I learnt leadership at Mood I: Nandan Nilekani. (2004, December 18). Retrieved June 2, 2010, from Rediff.com: http://www.rediff.com/getahead/2004/dec/18moodi.htm

4.          Nandan Nilekani – Public Life

“India has a way of doing business that brings together business leadership with national leadership and societal leadership. Many heads of business are deeply involved in matters from climate change to child nutrition, and they find it entirely appropriate and even necessary to make their views on such matters public… Indian leaders care as much about national purpose as about financial results.”

Forbes12

Nilekani has been active in public life. His first exposure to public life came about a decade ago, when the Chief Minister of Karnataka, invited him to head a body called the Bangalore Agenda Task Force to oversee public policy issues. Nilekani dedicated his weekends to the task force. Nilekani also became a member of the National Knowledge Commission (NKC) and a part of the National Advisory Group on e-governance. He also became a member of the review committee of the Jawaharlal Nehru National Urban Renewal Mission. He took over as the elected President of NCAER (the independent, applied economics research institute in India) in April 2008. Nilekani has also chaired the central government‘s IT Task Force for Power.

Nilekani was always a very expressive person and a much sought-after speaker in international conferences. He had the skill to see the larger picture and communicate ideas better than most. His famous comment – ‗the world is flat‘ made to New York Times writer Thomas Friedman led to a bestseller book by the same name. In 2007, he wrote a book titled

‗Imagining India‘ which received rave reviews. He already had a whole chapter on how unique identity was a key to many of India‘s issues. Perhaps this was what led to the Prime Minister‘s call on him to head the identity project. Nilekani was very happy with the appointment as it would allow him to bring in change at a national level where he could contribute as a change agent with his skill sets as a technocrat.

5.          Nandan Nilekani – Leading UIDAI

“I am generally very articulate but this is not the day or place where I can be articulate. I’ve been wrapped up in Infosys for 28 years. My only identity is Infosys. I will be going to lead a programme to give identity to every Indian. But today I am losing my identity… But, in my new role, I’m supposed to work with 600 government departments knowing fully well that no two government departments get along with one other.”

–       Nandan Nilekani, making a speech on his last day at Infosys

For 30 years, Nilekani was focused on selling Infosys to leading companies globally. Leaving Infosys was a tough call. The easier option for him could have easily been continuing on at Infosys till the retirement age of 60. However, he chose to take up a role in public service. He had to sell the concept of a national identity program to the grassroots politicians and bureaucrats. He was now leading Unique Identification Authority of India (UIDAI) as the

12 Cappelli, P., Singh, H., Singh, J., & Useem, M. (2010, April 14). The India Way Of Doing Business. Retrieved June 03, 2010, from Forbes: http://www.forbes.com/2010/04/14/india-business-way-leadership-citizenship- useem.html?boxes=leadershipchannellatest

Chairman. His past success with Infosys in no way guaranteed automatic success in this unique and challenging program. (See Exhibit 12 – Management Challenges – Private versus Public Sector on page 19) But, Nilekani was dedicated to the new challenge splitting his time between Delhi (UIDAI’s official headquarters) and Bangalore (his residence and where UIDAI’s technical team was based). In about four months he met 12 Chief Ministers of different states to explain in detail about the UID project. He needed their support in enrolling people into the program. Nilekani’s excellent public relations skills and his diplomacy would be of immense use here.

In between all this he had to take care of other assignments such as a workshop at the National Law School in Bangalore where he brainstormed with a group of legal experts on how to create the legal framework for the UIDAI, a workshop organized by the Indian Institute of Advanced Studies at Shimla where he met a bunch of sociologists, NGOs and political scientists to evangelize the UID project.

Nandan Nilekani in an interview with the Financial Express

You have been a government employee for nearly a year now. What has been your experience so far vis a vis the corporate world, in terms of the style of working?

One major thing that I have found is that in government you have to take everyone along with you if you want ideas to have even a chance of being successful. In the corporate sector, you have a board which you need to convince and if you carry a numerical majority, everyone has to fall in line.

In government the style is more consensual, also of course because of the scale of things. I have had meetings with a huge number of people and have had a great deal of cooperation from everyone, from the Prime Minister to chief ministers and RBI. Civil society groups, which are dispersed and diffused also need to be taken along. It takes a while to get this consensus

together, but one’s concepts are clearer because of that.

Excerpted from source

Nistula Hebbar. (2010, May 10). ‘UID model is only as good as its application’. Retrieved June 03, 2010, from Financial Express: http://www.financialexpress.com/printer/news/616356/

                      Political Challenges

According to studies from Harvard Business School and the World Bank, corruption13 siphons as much as 80% of the funds meant for India’s poor14. The UID program aimed to bring masses of India’s poor into the formal economy, where they could gain access to governmental finance schemes and social services. This would translate into new accountability to government bureaucracy. A unique ID could authenticate that goods and money make their way from local administrators to the people. Naturally, Nilekani had to encounter political challenges against powerful entrenched interests which included corrupt contractors and even government employees who usually misused the funds. (See Exhibit 6 – Previous unsuccessful efforts by the Indian Government for unique identification on page 14)

                      Other Indian Challenges

  • There are 75 million homeless, without birth certificates and without any identity
  • There are 600,000 villages in India—and only 6% have bank branches. (See Exhibit 10 and 11 on page 17)
  • Power outages are a key factor limiting the access and utility of computers in rural areas.
  • India has poor infrastructure, low literacy levels for many people, and labor inflexibilities.
  • India ranks 50th in the world in terms of productivity growth.

                      Opposition to UID – Data Privacy Concerns

Text Box: It was always clear that the unique identification scheme (UID) was going to gather opposition as it progressed. Those voices are crystallizing. The resistance comes from three domains. First, from civil society activists who feel that unique biometric identities will turn India into an Orwellian nightmare. Two, from bureaucratic infighting: senior civil servants resent the fact that an outsider has been brought in for a project that ought to have been “their” baby. Finally, from low-level politicians and officials who see UID as a dangerous idea that will only lead to one destination: direct cash transfers, cutting them out of the loot.
Excerpted from source
Give the UID project a chance. (2010, January 12). Retrieved June 03, 2010, from Livemint.com: http://www.livemint.com/2010/01/11212510/Give-the-UID-project-a-chance.html

Countries like Australia, UK, and the U.S. have found their unique identification projects impracticable due to the probability of abuse and the strong public opposition. In India,

13 According to global corruption watchdog Transparency International’s latest survey, India is perceived as a highly corrupt nation in the world ranked 84 among 180 countries on the integrity score.

14 Mehul Srivastava, Steve Hamm. (2009, July 16). The Man Behind India’s ID Card Program. Retrieved June 03, 2010, from BusinessWeek: http://www.businessweek.com/magazine/content/09_30/b4140056501197.htm

several civil society groups like Centre for Internet Society (CIS), the People‘s Union for Civil Liberties (PUCL), Aadhar Watch Initiative among others, opposed the UID for what they see as a another source data vulnerability15. Some other groups felt that there was no wide public discussion on the feasibility or desirability of the project. There was also opposition to entrepreneurs being appointed as non-politicians with cabinet rank16.

Opposition groups demanded immediate scrapping of the UID project including scrutiny of all transactions, increased transparency with contracts and de-linking of the project with the ongoing Census. (See Exhibit 7 – Nandan Nilekani at the unveiling of the new UID logo on page 19)

Nilekani acknowledged the concerns that the privacy of data could be compromised were legitimate but also felt that design of the UID program (e.g. data encryption) would prevent this from happening. In May 2010, he also admitted that there was a need for a larger debate on protection of privacy in the country. To prevent the potential abuse of the planned UID database on Indian citizens, Nilekani announced that the UIDAI would soon come out with a set of guidelines, not just for its own software, but also for all government departments holding sensitive personal information in their databases.

                      Technological Challenges

“India is an extremely complex country, and it requires a lot of localization…It was primarily a courtesy meeting where we also did inquire if Yahoo! could be of any help in the area of cloud (metaphor for the internet) technologies. We are in the business of managing data. We process around 500 billion emails every month, so we wondered if we could assist in the area of managing the databases as India tries to implement the Unique Identity (UID) project.”

– Carol Bartz, CEO of Yahoo! Inc. on her first visit to India and meeting the Indian Prime Minister17

Major global companies like Microsoft, Yahoo, Cisco and many others have expressed interest in helping the government and Nilekani with the UID project. The UID involves maintaining a huge database and handling vast amount of data besides online authentication. Hardware challenges include finding right vendors for computing power, storage vendors and systems integration challenges.

Another technical challenge is with biometric data – fingerprints and iris scan. How to handle cases where there is erosion of fingerprints of people who are involved in heavy physical labor (especially in rural India) or eye sight being affected over a period of time. To address this challenge, a biometrics committee was set up.

15 The UID would source data from multiple sources—various government agencies, including the income tax department, banks, the public distribution system and various state governments.

16 Citizens against UID project ‘Aadhaar’. (2010, April 29). Retrieved June 15, 2010, from Mizoram Express: http://mizoramexpress.com/index.php/2010/04/citizens-against-uid/

17 Leslie D’Monte. (2009, November 12). Yahoo! sets eyes on India’s UID project. Retrieved June 04, 2010, from Business Standard: http://www.business-standard.com/india/news/yahoo-sets-eyesindia%5Cs-uid-project/376108/

                      Reaching the rural areas – Rebranding UID

“We wanted a name with national appeal, was easy to remember and speak and applied to different languages”

Nandan Nilekani

Many analysts felt that a name like UID would not appeal to a majority of its target audience

– the marginalized people who will get a foolproof identity to claim various social sector scheme incentives. They might have to forgo a day‘s income to travel and get enrolled. To address this, the Finance Commission made a grant of about Rs 2,980 crore (approx. USD

637.71 million) for the incentive for getting registered and people below the poverty line would get Rs 100 each.

The project was renamed ‗Aadhar‘ (in Hindi the national language and meaning foundation or depend or support) with a new logo – the halo of the Sun on the imprint of a thumb. The name ‗Aadhaar‘ would also work across all regional languages too. (See Exhibit 7 on page 12) A majority of the population in rural India understood the visual and the audio much more than written words. After studying what works with rural Indian population e.g. other mass public change initiatives like polio awareness, Nilekani announced that the project would be marketed through media, advertisements, word of mouth, village posters among others.

6.          The French Experience – Sharing best practices

“Personal Identity Number system began in France in 1941 with a primary objective to organize recruitment of men in the army and has subsequently evolved as an important tool of social security among other uses.”

–       Michel Villac, French government expert on Unique Number systems.18

Many countries have issued numbers to their citizens for identification, most notably the Social Security Number by the U.S. (which was originally issued for social security benefits). (See Exhibit 15 – National identification number used by the governments of many countries on page 21)

Recently, France launched a Unique Social Security Number project successfully. France offered to help India with its experience in implementing the project. The French Embassy and Smartcard Forum of India (SCAFI) organized an initiative, the ―Unique Identity Workshop‖ to share the French experience in Unique Identification programs with key stakeholders of India’s UID project.

18 France offers expertise for India’s UID project. (2010, April 12). Retrieved June 15, 2010, from The Times of India: http://timesofindia.indiatimes.com/articleshow/5788345.cms

Exhibit 2 – Infosys – Company Profile – 2010

Company nameInfosys
NASDAQINFY
SectorTechnical and systems software
LocationBengaluru, Karnataka, India
Websitewww.infosys.com
Market cap~$ 32.43 billion
Revenue$ 4.8 billion
Employees109000
Revenue / employee$ 42470
Net income$ 1.285 billion
Shares outstanding570.7 million
       Annual earnings / share      $ 2.26                                                     
P/E ratio25.15

(Source Infosys Annual Report – Fiscal 2010 and ADR filings)

Exhibit 3 Infosys Timeline

YearEvent
1981Infosys was founded
1992Infosys became a public limited company
   1993    Received ISO 9001 certification                                          
1999First Indian company to get listed on NASDAQ
   1999    Achieved SEI-CMM Level 5                                                  
2001Crossed $ 400 million
   2002    Crossed $ 500 million                                                           
200474th among the World’s Top 100 InfoTech comp by Business Week
   2004    Reached the $ 1 billion milestone                                       
2006Reached the $ 2 billion milestone with 527,15 employees

Exhibit 4 Infosys Historical Stock Price Chart

Exhibit 5 Nandan Nilekani – Achievements and Awards

YearAward/Achievement
1988Co-founded India’s National Association of Software and Service Companies (NASSCOM)
2002Became the Chief Executive Officer of Infosys
2003‘World’s most respected business leaders’, a global survey by Financial Times and PricewaterhouseCoopers
2004Fortune magazine named him one of “Asia’s Power 25 – The Most Powerful People in Business in Asia”
2005The Joseph Schumpeter Prize for innovative services in economy, economic sciences and politics.
2006Padma Bhushan, one of the highest civilian honors awarded by the Government of India
2006“100 Most Influential People in the World” by TIME magazine
2006“Business Leader of the Year” by Forbes Asia
2006Became one of the youngest entrepreneurs to join 20 global leaders on the World Economic Forum Foundation Board.
2007Forbes “Businessman of the Year” for Asia
2009Time magazine placed Nilekani in the Time 100 list of ‘World’s Most Influential People’
2009A speaker at the prestigious TED conference where he talked about his ideas for India’s future
2009‘Legend in Leadership Award’ by the Yale University

Exhibit 6 – Previous unsuccessful efforts by the Indian Government for unique identification

Text Box: Voter ID Card

Almost a decade ago, the Indian government had issued voter ID cards.
The ID card featured a grainy black and white photograph of the voter with address and a Voter ID number. The program though still present in the system was prone to corruption as anyone could print and laminate a card. One could even buy the ID cards on the black market to get food rations and residency permits and perhaps even voting rights.

PAN Card

The income tax department issues a taxpayer ID, called the PAN card.
Only a fraction of India’s population with jobs/businesses in the organized sector or bank savings can get one. One can buy a fake card easily in the black market.

Ration Card

Ration cards have been an important part of the Public Distribution System (PDS) in India. However, with rampant corruption in India, a ration card can be bought for as low as Rs. 500(15 US$) in the black market.

Exhibit 7 – Nandan Nilekani at the unveiling of the new UID logo

(Source: Photo by R.V. Moorthy19, The Hindu dated April 26, 2010)

Exhibit 8 Leadership in India

19 http://beta.thehindu.com/news/national/article410397.ece

Exhibit 9 Features of the UID project

  • Currently, the UIDAI is executing proof of concepts (PoCs) in three states – Andhra Pradesh, Karnataka and Bihar. These PoCs will enable certain systems to be tested before the concept is scaled up.
  • UID project is expected to create 0.35 million new jobs to carry out the mammoth task of providing ID to Indian citizens, numbering over one billion.
  • A study by CLSA, a brokerage firm, on the impact of the project estimates that it will lead to commercial opportunity worth $20 billion during its first five years of operation and $10bn per year from sixth year onwards.
  • While banks are estimated to gain 125 million new accounts, telecom providers may get 60 million new subscribers, leading to an additional US$4.5 billion in mobile payments and US$2 billion in average revenue per user.
  • Roll out of the first Unique Indentification (UID) numbers – the roll out will be between August 2010 and February 2011
  • The UID is a number, not an identification card.
  • Each number will be unique to an individual, with fingerprints of all 10 fingers and an iris scan of the eye used to identify the person.
  • The UID project is estimated to offer IT companies an Rs 15,000-20,000 crore (more than US$ 3 billion) opportunity, as it sets to build an ecosystem around the project, comprising biometrics, databases, smartcards, storage and system integration.
  • UIDAI was allocated a sum of Rs 120 crore (approx. US$ 25.80 million) in last year’s (2009) budget and Rs 1,900 crore (approx. US$ 408.51 million) this year (2010).
  • MindTree, the Bangalore-based information technology (IT) services provider, has secured the application development services (ADM) segment. The ADM multi-crore project involves the complete application lifecycle — from designing, developing, testing, maintaining and supporting the UID application to providing help desk services from the UIDAI’s (Unique Identification Authority of India) Bangalore Technology Centre.

Exhibit 10 – India at a Glance

Area3.287×10^6 square kilometers (world rank: 7th)
Population1.18 billion people (world rank: 2nd)
Population density397 people per square kilometer (world rank: 28th)
Population growth1.49% per year (world rank: 95th)
Life expectancy69.9 years (world rank: 149th)
Median age25.3 years (world rank: 132nd)
Literacy fraction61%
GDP$1.254 trillion per year (world rank: 13th)
GDP at parity$3.304 trillion per year (2008) (world rank: 4th)
Real GDP$1.254 trillion per year (price-adjusted to year-2008 US dollars) (world rank: 12th)
GDP per capita$ 1060 per person per year (2008) (world rank: 186th)
GDP real growth7.288% per year (world rank: 36th)
Inflation rate7.642% per year (world rank: 104th)
Unemployment rate9.1% (2008) (world rank: 90th)

(Source: Wolfram Alpha)

Exhibit 11 India on the World Map

Text Box: Ø	States in India - There are 28 states and 7 Union territories in the country.

Ø	Districts - There are 626 Districts in India administered by their respective State/UT Government.

Ø	Languages - The Constitution of India has recognized 22 different
languages. There are hundreds of dialects

Ø	National Portal of India - http://india.gov.in/

Exhibit 12 – Management Challenges – Private versus Public Sector

IssueCorporate/Private SectorGovernment/Public Sector
BudgetTight Budgets but Flexible decisionsBudgets planned much in advance and inflexible
RecruitmentQuick hiring depending on project needsSlow
FiringQuick. Non-performers are laid off or given the pink slipSlow and requires excessive documentation
BureaucracyCorporate bureaucracies tend to be less prevalentSheer size and job security foster strong bureaucratic attitudes and resistance to change
ProcurementFast and as per requirementsSlow and Lengthy procedures
CorruptionLessTends to be more
ProductivityBetterLess. Laid-back employees common
Project deliveryMeets expectationsProject delays/overruns common
Cost CuttingPossible with specific project cutsNot possible in many cases
VisibilityAnonymity, isolation from the mediaHigh visibility, pursued by the media
RewardsRewards for achievement Excess funds distributed as a bonus or salary increasePunishment for failure
Leadership continuityLong-termLimited by elections and Government change
ObjectivesMeasured by results/profitsMeasured by Process

(Adapted from various sources)

Exhibit 13 – Maturity levels in the CMM

Level 1A project is executed in a manner that the team and project manager see fit
Level 2 Repeatable levelEstablished project management practices are employed, although organization-wide processes may not exist
Level 3 – Defined levelOrganization-wide processes have been defined and are regularly followed
Level 4 Managed levelQuantitative understanding of the process capability makes it possible to quantitatively predict and control the process performance on a project
Level 5 Optimizing levelThe process capability is improved in a controlled manner and the improvement is evaluated quantitatively

(Source Managing Software Projects: The Infosys Model by By Pankaj Jalote)

Exhibit 14 List of organizations/bodies opposing UID Project across India

Moving Republic, Bangalore

Centre for Internet and Society, Bangalore Citizens Action Forum, Bangalore

PUCL, Karnataka Slum Janandolana

Alternative Law Forum, Bangalore Indian Social Action Forum (INSAF) PEACE, New Delhi

Manthan Adhyayan Kendra, Badvani(MP)

South Indian Cell for Human Rights Education & Monitoring (SICHREM), Bangalore

Posco Prathirodh Sangram Samithi, Orissa Adivasi Mulvasi Astitva Raksha Manch, Jharkhand Himalaya Niti Abhiyan, Himachal Pradesh National Hawkers Federation

Kerala Swathanthra Matsya Thozhilali Federation (KSMTF)

Nagpur Municipal Corporation Employees Union Nadi Ghati Morcha, Chhattisgarh

Peoples’ Solidarity Concerns- Bangalore Janvikas, Orissa

Other Media Communications, Bangalore Visual search, Bangalore

Theeradesa MahilaVedi, Kerala

National Coastal Women’s Movement, Chennai Alliance of women’s right in Disaster(ANWORD), Chennai

Kerala Tourism watch

Dalit Women’s Forum, Andhra Pradesh

Centre for Education and Documentation, Mumbai IPTA (Bihar)

EKTA (commitee for communal amity), Mumbai EQATIONS, Bangalore

Openspace, Bangalore

Rajadhari Basti Uriyan Parishad, Orissa Chhattisgarh Kisan Mazdoor Vikas Kendra Asangatit karmakar Shramik Union, UP Munsikhan Mawat vikas Community Foundation, Alwar, Rajasthan

Pondichery Slum Dwellers Federation Himpravesh, solar, Himachal Pradesh Chhattisgarh Action Reserch Team (CART), Raipur ViBGYOR Film Collective, Kerala

Adivasi, Sarumgi Vikas Sangh, Gujarat Samata, Orissa

Society for Culture & Development, Kerala Youth Initiative for Leadership Training, Kerala Patabhedam Magazine, Calicut, Kerala

Global Alternate Information Applications(GAIA), Thrissur, Kerala

Kabani – The Other Direction, Kerala Pedestrian Pictures, Bangalore

Just Peace Foundation, Manipur Concern, IISc, Bangalore

(Source: Citizens against UID project ‘Aadhaar’. (2010, April 29). Retrieved June 15, 2010, from Mizoram Express:

http://mizoramexpress.com/index.php/2010/04/citizens-against-uid/)

Exhibit 15 National identification number used by the governments of many countries

CountryUnique IDDescriptionSource
AustraliaAustralia Card (Proposed)In Australia there is no universal identifying number for individuals           The Australia Card proposal would have created a universal number for Australian …http://en.wikipedia.org/wiki/Natio nal_identification_number
ChinaID number has 18 digits and is in the format RRRRRRYYYYMMDD SSSCThe Republic of China National Identification Card is an identity document … Possession of the Identification Card along with the Republic China Passport …http://en.wikipedia.org/wiki/Natio nal_Identification_Card_(Republic_of _China)
FranceINSEE codeIn France, the INSEE code is used as a social insurance number, a national identification number, for taxation purposes, for employment, etc. …http://en.wikipedia.org/wiki/Natio nal_identification_number
GermanyThe West German government intended to create a 12-digit personal identification number (Personenkennzeiche n, PKZ)In Germany, there is no national identification number legalized     In East Germany, a similar system named Personenkennzahl (PKZ) was set up in 1970 and …http://en.wikipedia.org/wiki/Natio nal_identification_number
South AfricaIdentity Document The ID number is a 13-digit number of the form YYMMDDGSSSCAZ.In the Republic of South Africa, every citizen can apply for an Identity … In contrast to other countries the South African ID number is not unique in its …http://en.wikipedia.org/wiki/Natio nal_identification_number
UKA National Insurance number, generally called an NI Number (NINO), is used to administer state benefits and get jobsNational Identity Cards for UK nationals became available to people resident…….. “Johnson reveals ID register linked to NI numbers”. Theregister.co.uk. …http://en.wikipedia.org/wiki/Natio nal_identity_card_(United_Kingdom)
United States of AmericaSocial Security NumberThere is no true national identity cards in the United States of America, in the sense that there is no federal agency with nationwide jurisdiction that …http://en.wikipedia.org/wiki/Identi ty_documents_in_the_United_States

(Source: Adapted from http://en.wikipedia.org/wiki/National_identification_number)

7.          Questions

  1. Using concepts and theories from Chapter 12 of the text book, how has Nilekani used human resources to attract the best talent and build strong teams at Infosys?
  2. Managing diversity is a strength of Infosys and Nilekani to manage at home in India, to move into new markets and managing politics. Using the concepts and theories of Chapter 13 from the text book analyse how Infosys and Nilekani have been able to manage diversity.
  3. Which leadership theory as set out in Chapter 15 of the text book, would be most helpful in guiding Nilekani‘s transition from private to public sector leadership? Explain.
  4. How does Nilekani display Emotional Intelligence in his ability to lead Infosys through the many changes?
  5. Motivating staff is a key success factor for Infosys. Using concepts and theories from Chapter 16 of the text book, evaluate how Infosys has successfully grown and moved internationally.

6.     Additional Readings and References

  1. Official Website of UIDAI: http://uidai.gov.in/