Extended-form Case Study

Outsourcing services as a way of entering new markets

Published on October 31, 2019   10 min

A selection of talks on Technology & Operations

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0:00
Hello. My name is Mariusz Soltanifar, and I am a researcher in the area of corporate entrepreneurship and marketing lecturer at Hanze International Business School in Groningen, the Netherlands. Today, I'm going to be talking about outsourcing services and how they can be used for a new business process while focusing on the Infosys company as an example. We will learn more about outsourcing services and how they can be used for entering new markets. Let us first have a look at the overview of what I've prepared.
0:32
This case discusses how Infosys uses outsourcing services to cope with the challenge of entering new markets and grow as a company and is structured as follows. First, the nature of the challenge is highlighted. Second, the company itself is presented. Third, the explanation of what has been done, so action taken is discussed. Fourth, the outcome is reviewed. Lastly, the learning is presented.
1:02
Let me highlight the nature of the challenge Infosys faced first. Infosys is a global consulting and IT services company that was established in India in 1981. In the early '90s, there appeared to be a disconnect between what the management of Infosys believed they could accomplish and what clients perceived them to be capable of. Infosys founders realized that to be taken seriously, they would need to be a global corporation. They could manage both growth and risk simultaneously. At the same time, businesses were being forced to outsource IT projects due to the difficulty and expenses of recruiting and training sufficient IT staff in a resource-constrained environment. Now, outsourcing enabled businesses to minimize the risks and to reduce the time to completion of large IT projects by shifting some or all of their IT responsibilities to capable service organizations.

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