L&T Infotech's SAP Technical Factory

The Problem: L&T Infotech's SAP BU conducted a workshop to review performance parameters and brainstormed to propose multiple initiatives to improve Revenue & Profitability. "SAP Technical Factory Framework" proposed an innovative Service Delivery approach. It was decided to strengthen and optimize the technical delivery to achieve the improvement in overall profitability using Factory Framework. SAP Technical Factory was conceptualized as an improvement initiative for technical service delivery with a business objective to reduce cost and improve profitability.

The Solution: They deployed an innovative service delivery model, ‘SAP Technical Factory Framework', to bring about cost reduction and service optimization in technical development projects. This model works in a shared services mode where a central delivery team leverages a pool of resources and the organization-wide expertise to deliver the programming services using specially defined processes, tools and templates. In this model technical service delivery task are split into multiple line concepts such as Functional specifications, Technical Specifications, build, Quality Control and Dispatch lines.

The Result: There has been a cost reduction of around 12% of overall technical delivery cost. Moreover, there is reduction in lead time of delivery of individual objects as well as overall effort reduction in technical realization phase by 10% using reusable components.