In an interview with Narayana Murthy published in Times of India, Mr Murthy talks about the future of offshoring and defines Infosys’s offshoring model as Collaborative Distributed Development Model. According to Mr Murthy, the term ‘offshore’ somehow assumes that the work is entirely done in India. Infosys’s vision is sourcing capital from where it is cheapest, sourcing talent from where it is best available, producing where it is most cost effective and selling where the markets are.
Future is not about pedigree, it is not about financial strength, future is not about heritage. Future is about innovation and how nimble you are. The future is all about how open minded you are to learn from other people. Companies like Infosys that bring innovation in making this collaborative distributed development model become more and more efficient and effective is where the future is. While I have tremendous respect for these corporations I am not over awed by them, I don’t fear them, I respect them.
Update, 20-May-2006: An article came up today in CIOL regarding this. Murthy discloses GDM 2.0
In an exclusive interview, NR Narayana Murthy, chairman and chief mentor Infosys Technologies to CyberMedia News, disclosed a new business delivery model in IT services, which he terms, the Collaborative distributed delivery model.
While the GDM makes use of talent and infrastructure-including on-shore, near-shore and off-shore locations in various parts of the world, the collaborative model would involve distribution of various aspects of a project based on the competencies of each center, thereby improving and speeding the delivery process.
“In this, we would make use of talents and skills from different parts of the world, where virtual teams would use technology to deliver various components of the project,” said Murthy. For example, software architecture would be done out of the UK while functional design would be carried out in India and hardware engineering would be developed somewhere else.
He also said that IT services companies would learn to leverage the “power of time differences” in a better way and solve problems in a relay fashion.
“In around 10-15 years time, across a 24-hour work day you could have various centers working in an assembly line mode to execute projects.”