Problem Diagnosis

Infosys Consulting is one of the most leading IT services firm in the world and the annual revenues of the company have approaches to around $ 5 billion. The company is engaged in all the aspects of the IT services today that range from technology to business consulting to IT infrastructure services, custom software development, technology consulting for the application services and the business process outsourcing. The firm has employed so far around 125,000 employees around the world and it has 59 development centers and 65 offices around 30 countries of the world(Marne L. Arthaud-Day, 2012).

Now at the start of the year 2010, the global delivery model of Infosys Consulting was being challenges by the backlash by the US against the outsourcing of the workers for Infosys Consulting. This policy was also further being supported by the H-1B visa reforms and the tax incentives. The tax incentives that were being proposed would save the American taxpayers profits of around $ 210 billion over the period of 10 years as all the taxes paid by them would be repatriated that they used to pay on the foreign profits(Marne L. Arthaud-Day, 2012). There were a number of arguments in support for the H-1B reforms such as making sure and ensuing that there were enough numbers of the American workers that are qualified and all the workers are hired from within the US itself if the business is operating in the US.Infosys Consulting In The Us – What To Do Now Harvard Case Solution & Analysis

This means that all the jobs will have to be filled by the American workers before they are filled by the foreign workers. Furthermore, the competition in the IT industry was becoming competitive and competitors like Tata and Wipro were challenging the global consulting strategy of Infosys Consulting(Marne L. Arthaud-Day, 2012). Therefore, this is the main problem faced by Infosys Consulting at this point of time and recommendations need to be made after the analysis of the case about how Infosys Consulting should react to the pressure for hiring the local talent that was costly and at the same time also remain competitive within the market.

Case Analysis

We first begin the analysis by overviewing the IT services and business consulting industry and analyzing it briefly in terms of the Porter’s five forces model.

Overview of IT services industry and Business Consulting

During the early years in the 1990s, the BPO work within India was conducted by the captive units of the American Corporations such as the GE company. In the later part of the 1990s many Indian IT companies were expanded like the Infosys Consulting by adding more lines of services. The grew their business and leveraged on the basis of the benefits of offshoring.

During the 2000s, there was a rapid growth of the global firms that were expanding as the IT services were also growing rapidly and it was during this time period when the predominant models such as the global delivery model of Infosys Consulting were developed for meeting the demands of the end to end services such as application development and business consulting etc.(Muthyala, 2016).................

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