Microsoft IT India: A Journey in Business Model Transformation

Abstract

This case is set in July 2013, at the Microsoft IT - India headquarters in Hyderabad. In 2010, when Raj Biyani, a 12-year veteran from Microsoft Redmond had taken over MSIT’s operations in Hyderabad, the results of the newly released employee survey were very disturbing indicating low morale, rising attrition and dis-satisfied employees. The organization structure at Microsoft IT India was largely responsible for these challenges, as it was divided on the same lines as its Redmond headquarters, with several Business Process Units (BPUs) working in silos. All employees at Microsoft IT India reported to MSIT Redmond, with only a dotted line reporting to the one at the helm of Microsoft IT India. Moreover, a peculiar rotational leadership being practiced at Microsoft IT India had resulted in department heads leading the Indian organization in turns - thereby resulting in a serious leadership vacuum. Biyani was clear that the only solution to this malaise was to ensure that Microsoft IT India became a strategic offshore operation of Microsoft. Towards this goal, Biyani spearheaded a blueprint to transform MSIT–India, and provide its employees with better growth and career opportunities. By January 2013, the value proposition for Microsoft IT India was defined, and approvals received for the new roles. After several rounds of refinement, the model was implemented and successfully validated through several early wins. While the initial response received was very positive, Biyanirecognized that much was yet to be done. For the model to be truly sustainable, he would have to create a strong message around the value proposition, and come up with the most appropriate metrics to track and report the progress of his vision. What else would Biyani need to do to convince all Microsoft IT India stakeholders on the strong value proposition that had driven him to embark on this disruptive organizational transformation at the India offshore center?