BANGALORE: InfosysBSE -0.54 %
is in discussions with an Israeli management consultancy that counts
top global corporations as its clients for a project to dramatically
improve productivity in its business, according to people familiar with the matter.
The Bangalore-based company, which is aiming for a return to industry-leading growth and margins under chairman NR Narayana Murthy, is considering engaging the Israeli firm to help its operations become more efficient while also accelerating its top line growth, the sources said on condition of anonymity.
Goldratt Consulting, which is based in Tel Aviv and has among its clientele companies such as Procter & Gamble and Amazon, is proposing its proprietary 'Theory of Constraints' solution to help Infosys optimise the way in which it delivers software to clients, a senior executive privy to the development told ET, adding that no final decision has been made.
An email to Goldratt Consulting did not elicit a reply while an Infosys spokeswoman declined to comment.
The 'Theory of Constraints' is a management philosophy enunciated by the late Eliyahu Goldratt, a former physicist who founded the eponymous consulting firm. Goldratt Consulting, whose Indian customers include TitanBSE 4.15 %, Croma and Madura Garments, claims that the key is identifying and removing operational bottlenecks.
If a deal goes through, Goldratt is promising that it will help Infosys deploy its resources in such a way that the time taken to deliver software services to clients is crunched as much as possible, with potential reductions of up to 40%. Once Infosys is able to do more with the same resources, the sources said it will free up the company to chase more projects and help expand revenue growth by at least 25% a year from current levels. "It is an important change that we are trying to bring at Infosys," a senior executive briefed on the discussion said on conditions of anonymity.
The Israeli consultancy has proposed starting the initiative with a product vertical which will have to undergo an overhaul, including employee restructuring if Goldratt gets into the picture. The overhaul is expected to reduce time taken to build as well as deliver the product to the client, thus boosting employee productivity as well as profit margins. Infosys's product vertical is called Products Platforms and Solutions, which includes the company's core-banking product Finacle, contributing nearly 6% of its over $7 billion (Rs 42,000 crore) sales.
The Bangalore-based company, which is aiming for a return to industry-leading growth and margins under chairman NR Narayana Murthy, is considering engaging the Israeli firm to help its operations become more efficient while also accelerating its top line growth, the sources said on condition of anonymity.
Goldratt Consulting, which is based in Tel Aviv and has among its clientele companies such as Procter & Gamble and Amazon, is proposing its proprietary 'Theory of Constraints' solution to help Infosys optimise the way in which it delivers software to clients, a senior executive privy to the development told ET, adding that no final decision has been made.
An email to Goldratt Consulting did not elicit a reply while an Infosys spokeswoman declined to comment.
The 'Theory of Constraints' is a management philosophy enunciated by the late Eliyahu Goldratt, a former physicist who founded the eponymous consulting firm. Goldratt Consulting, whose Indian customers include TitanBSE 4.15 %, Croma and Madura Garments, claims that the key is identifying and removing operational bottlenecks.
If a deal goes through, Goldratt is promising that it will help Infosys deploy its resources in such a way that the time taken to deliver software services to clients is crunched as much as possible, with potential reductions of up to 40%. Once Infosys is able to do more with the same resources, the sources said it will free up the company to chase more projects and help expand revenue growth by at least 25% a year from current levels. "It is an important change that we are trying to bring at Infosys," a senior executive briefed on the discussion said on conditions of anonymity.
The Israeli consultancy has proposed starting the initiative with a product vertical which will have to undergo an overhaul, including employee restructuring if Goldratt gets into the picture. The overhaul is expected to reduce time taken to build as well as deliver the product to the client, thus boosting employee productivity as well as profit margins. Infosys's product vertical is called Products Platforms and Solutions, which includes the company's core-banking product Finacle, contributing nearly 6% of its over $7 billion (Rs 42,000 crore) sales.
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