Microsoft IT India: A Journey in Business Model Transformation

This case is set in July 2013, at the Microsoft IT (MSIT) – India headquarters in Hyderabad. In 2010, when Raj Biyani, as 12-year veteran from Microsoft Redmond takes over MSIT’s operations Hydrabad, he is faced with low morale and high attrition rates due to a fragmented organisational structure. Biyani sets out to transform MSIT India into a strategic offshore operation of Microsoft. The first objective is to bring together the disconnected Microsoft IT India teams by aligning the organisation to process and services; the second is to develop MSIT into a regional talent hub that will bring engineering resources into a shared pool that could be continually aligned to MSIT’s business priorities. Instead of the teams working in silos, all employees will be grouped under the leadership of three discipline leads.

By January 2013, the value proposition for MSIT India has been defined. However, while the initial response is very positive, Biyani recognises that much has yet to be done. For the model to be truly sustainable, he has to create a strong value proposition, and come up with the most appropriate metrics to track and report his vision.

The aim of the case is to apprise students of the dynamics and difficulties of developing a new organisational model for a subsidiary, while identifying key challenges associated with organisational transformation and its related leadership issues. The case also explores change management in the organisational transformation process.

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