Tapping into a Digital Brain: AI-Powered Talent Management at Infosys Group 1 Vuong Quyen Mai, Jaya Sai Prakash Mandali, Shivani Medarametla, Bharadwaj Nampelly, Saketh Varma Pakalapati Emerging Tech Information System April 27, 2023 Tapping into a Digital Brain: AI-Powered Talent Management at Infosys Page 1 Background The case study focuses on the Infosys’s initiative to develop an AI-powered employee management system. A multinational provider of IT consulting and services, Infosys has locations across 40 nations. Over 35 years, an enterprise with a $250 market capitalization has successfully grown into one with a $33 billion market capitalization. The business achieved a significant milestone in 2017 with $10.5 billion in revenue and over 200,000 employees. The company's primary activities involve receiving and resolving issues with exceptional IT projects from clients. Hence, it takes a lot of time and effort to put together the appropriate team of people for a given project. Moreover, this arrangement would then become more frequent as ongoing new projects are processed, and ongoing old projects are completed. The firm needs a more efficient method than the conventional process – the manual assigned procedure – to manage and allocate an immense amount of human resources. The CEO and co-founder of Infosys, Nandan Nilekani, issued a challenge to the organization in 2017 to model itself after a living organism that could sense, react, and adapt to changing needs and circumstances. The first step in achieving Nilekanni's vision and resolving the issue of efficient human resource arrangement is the development of an AI-based talent management system. This system is anticipated to alter management practices and enhance overall company productivity. Analysis The Overview of Infosys’s Talent Management System Offering exceptional solutions in innovation, client satisfaction, and profitability is Infosys's core competitive advantage. This advantage is demonstrated not only in each project, but also in the company’s operation process. Thus, the success of the projects and the reputation of the firm depend heavily on the alignment of the right talents and clients. The Infosys’s talent management system is up against a great challenge while also demonstrating efficiency over the traditional way and ensuring the ongoing success of the business. The talent allocation process at Infosys requires more than a million hours of work annually when done the old-fashioned way. There are four tasks need to be done: (1) determine open vacancies for clients’ projects; (2) assess required expertise and experience; (3) find available and qualified talents; (4) and appoint requirement-meet employee to the projects. Once the evaluation and selection process has been completed in steps (1), (2), and (3), the task of Tapping into a Digital Brain: AI-Powered Talent Management at Infosys Page 2 assigning suitable talents in step (4) is straightforward. The procedure for gathering and processing data is depicted in Appendix A. Analyzing fundamental aspects of development progress depends significantly on determining the users' domain. In fact, area managers are the system's primary users; they send requests and accept the talent the system recommends. The development team must comprehend the primary purpose and motivation in order to satisfy the user experience. Despite the fact that they do not use talents management software, employees are the ones who are most directly impacted by the decisions and outcomes made by the system. The Talent Task Force (TTF) was established to guarantee the rights of talents and the correct allocation of personnel. To help staffing decision-makers be more productive, TTF was assigned to provide proposals. Below is an analysis of the three main components of the most recent talents' management system: Determining the Talent Demand. It is challenging for the demand estimation process to obtain information quickly, completely, and correctly. In facts, the company is a massive compilation of thousands of small groups. Therefore, the process of gathering data solely depends on the contributions of various localized, small committees around the world. The policies and business strategy of each region have significant impacts on common issues. Many area managers refuse to use the firm’s employee demand system unless their local team was unable to handle the project. Furthermore, to saving time and satisfy the customer, most projects are assigned to the employee who is closest to the location rather than the one who is best suited to complete them. Determining the Talent Supply. Even when the completion characteristic is not required, the speed and accuracy of data collection are still crucial to the supply estimation process. The talent's potential for reassignment and the predicted talent availability in the near future are two critical pieces of information. The delayed data on employee work status makes it more difficult to collect this data. In actuality, eligible employee reports are unreliable due to the inaccuracies in the process of updating information of managers or arising tasks. Then, The TTF ultimately decides to manually verify each employee's availability for each staffing suggestion. To clarify, all employees' work status is anticipated to be accessible in a company's central pool of available talents once a project is completed. However, in order to preserve the talent supply and guarantee client satisfaction, the area managers assign a talent to a new project as soon as Tapping into a Digital Brain: AI-Powered Talent Management at Infosys Page 3 possible. The managers will indeed add a “buffer” code to the talents' profiles if there were no upcoming projects, preventing other managers from requesting them. Determining the Talent Skill Competences. Once again, updating data takes on a key role in the process of evaluating an employee's skill set. Data sources on employee competencies must be supplemented not only during the hiring process, but also as the project is completed. The time spent working on a particular project and the skills needed are two essential factors to consider when estimating a talent's skill proficiency. The challenge with skill evaluation is that not every talent in a project works well enough and fully understands the entire project. As a result, some managers encounter the issue of recommended talent's lack of expertise. Moreover, the TTF is challenged in the era of digital transformation and ongoing technology advancement. The majority of Infosys’s talents are constantly acquiring new tech and refining their existing skills, which add another factor to determining talent skill progress. The New Talent Management Solution's Design: Plans, Goals & Issues AI technology implementation. The decision to integrate AI into the system should indeed address the issue of biased data. The output of AI may be biased, even if the company has no intention of using biased data because of missing data or male-predominated workforce. Optical Character Recognition (OCR) and Employee Knowledge Graph (EKG) are two machine learning techniques that are recommended to help with getting detailed information. The system could use OCR to extract information from data sets based on project description, project rule, development, strategies, and personnel lists. Besides, the EKG method enables the integration of a talents’ profile with their owned skills, completed projects, networks, and interactions. The AI-powered system would change the operation procedure by saving time and accelerating searching, matching, staffing progress. Enabling managers to input data. The gathering of demand data is a most challenge for the current talent management system. For the benefit of the company as a whole, managers who refuse to update information for either objective or subjective reasons need to be encouraged to change. To actualize, The new employee management system must demonstrate its benefits in order to help the managers as well as the business. These advantages of the new management system must be shown in the new features, capabilities, and productivity boost. Low quality input data. The primary ground for TTF’s rejecting candidates is a talent's lack of skill. However, inadequate input data had a significant negative impact on the skill Tapping into a Digital Brain: AI-Powered Talent Management at Infosys Page 4 proficiency assessment. The system needs a different method of collecting data to improve the outcome of the assessment progress. The business strategy involving a variety of data collection sources has a great deal of potential and viability. As an instance, the managers' and employees' perspectives are included in the extended data source of talents' proficiency skill. After finishing a project, each talent would complete a self-assessment survey. Then, the AI system will compare and synthesize with the managers' input data to create a more accurate talents’ profile. Issue To solve the current problem of poor quality data, Infosys must ensure input data requirements (reliable, accurate, and consistent) while maintaining the ongoing satisfactions of customer, and the benefits of both managers and customers. Alternatives Alternative 1: Large-scale data collection The first alternative solution involves collecting data on a large scale, which requires managers and employees to enter a lot of the required data. The most advantageous approach for the data source and machine learning method is to collect as many data variables as possible. Indeed, more input variables produce results with higher quality and match acceptance ratings. After the models have received and processed input data, appropriate ones will be statistically chosen. All data will be stored, combined with the data from the following project, and used in the future even though the eliminated data variables were unnecessary for the most recent project. The entire grand data collection would significant increase the quality of input data and serve as the ideal source of information for determining in demand, supply, and proficient skills of talents. This solution fully addresses the issues of data scarcity and poor quality while also being quickly implemented on a large scale. In fact, the management model handles all the data processing while managers and talents provide all the data collection. TTF's remaining task is to review the data input and record employee feedback regarding the performance of the system. The large-scale data alternative, however, does not encourage productivity or most advantages for employees or managers. The amount of input data is excessive, which could hinder the data gathering. To illustrate, superfluous data requirements will give rise to managers taking on quite a lot of unessential works. The fact that the managers did not update the necessary information frequently enough was one issue that contributed to the old talent Tapping into a Digital Brain: AI-Powered Talent Management at Infosys Page 5 management system's stagnation. Mass data collection actually discourages managers from utilizing the new system and overwhelms them with redundant works. Alternative 2: Conservative input collection A different approach for Infosys is starting the development of talents allocation system by variable researching phase. With this strategy, the TTF would have to conduct surveys and research on significant impact input variables. Based on which variables have considerable impact on the majority of organizations’project, TTF will select the core input variables. In brief, the variable research will include doing survey with managers and synthesize for the variable collection. This strategy modifies the operational process to focus on values that are more beneficial to managers and employees. First off, machine learning models are no longer fully capable of handling the data processing. The TTF department will offer predetermined variables that eliminate unnecessary input requirements. As a result, managers will dedicate less time and work looking for and requesting talent for each project. The self-examination would also not feel excessively drawn out or pointless to talents at the same time. The shortcoming in this workaround is that it will reduce the variety and precision of the management system’s outcomes. To elaborate, the selected variables from TTF, which will be applied to all projects’ requirement, are subjective and do not reflect the goals of each project. The arrangement of personnel for projects will only be determined by general mass factors, not by factors unique to each project. Each project variable input reflects the distinct visions, objectives, and expectations of the client. The projects will not be tailored and personalized as the firm’s promised goals. As a result, the quality of allocation system and projects’ output will not be guaranteed. Additionally, the research phase for this solution causes the system initiative to take longer. Alternative 3: Mangers’ filtering system Managers' variable input filtering is another alternative approach to obtaining input for Infosys. Similar to the first alternative, this one was developed by requesting manager and employee input for data. The data will then be processed by the system model, and TTF will review and assess the operation's progress. The key distinction is that managers are allowed to filter the variable for the input data. Managers, who interact with consumers directly, could, select influential and relevant variables according to how well they fit a project. Tapping into a Digital Brain: AI-Powered Talent Management at Infosys Page 6 The manager selection procedure will allow more features for managers while guaranteeing that the input data will meet the project's requirements. Managers will be encouraged to use the system more because they have more options and comparisons during the updating and hiring processes. Additionally, because no additional research is required in order to implement the talent management system, it is quicker to develop and initiate. TTF will assist the project managers in implementing the management system and wait for the model to return a list of compatible candidates. The deficiencies of this alternative are the discrete talent profile and the disorganized data. Undirected data and biased selections are the main issues with giving managers decision-making authority. To give an instance, the flexibility in managers' variable selection will eliminate some essential variable input that does not provide enough information for the machine learning model. The evaluation of talents' proficient skills will be less objective due to the lack of data. In addition, the talents’ self-assessment is limited by local manager’s filtering. As a result, the task of matching will be inaccurate because of the low-quality profile and evaluation. Alternative 4: Combined approach The discussion of all three above approaches uncovered the potentials and limitations of each aspect. The Infosys’s core values need to be preserved in order to maintain its reputation and well-operation. Hence, the final alternative will combine the advantages of the previous solutions to make the best course of action for the firm. Three key advantages from other alternatives include: (1) good amount of data variable for the assessment, (2) managers have more options to use the management system, (3) complete and objective talents’ profile. Moreover, the matching results will be more accurate due to comprehensive talents’ profile. The method will have an additional development phase where a different machine learning model will be trained for the variable with the greatest impact. Thus, Infosys' core value will be reserved in the criteria that are necessary for finding talent. When managers use the system to better align with a project's objectives, they can choose to add more variables. The self-assessment component also offers options for the talents, which increases the amount of data used to determine skill proficiency. The longer development period and potential for additional costs are this alternative solution's drawbacks. The development phase requires additional model training for most impacted variables. As a result, it requires more time to develop and integrate with the primary Tapping into a Digital Brain: AI-Powered Talent Management at Infosys Page 7 model. Different teams might develop the evaluating variable model, which would raise the budget for progress. Recommendation We assessed the above alternatives using a decision matrix in order to effectively select the option that best aligns Infosys's current circumstance. We utilized critical thinking and experience to rate the alternatives for each criterion from 0 (no effect or negative effect) to 3 (strongly positive effect). Based on Infosys’s goal on a new talent management system’s design, there are five considered criteria: high-quality input, managers’ satisfaction, accurate talents’ profile, ease of implementation, projects’ goals guaranteed. Refer to Appendix B, we can clearly see that alternative 1 and 4 will provide the most quality since alternative 3 has the lowest one. The rest of the table represent the full decision and results. To summarize, alternative 4 bring the most benefits while fulfilling all requirements with exceptional level. To emphasize, this alternative solution does not sacrifice any conditions – from managers, projects' goals, to employees – to develop and operate. By both using predefined core variable and opening options for managers, Infosys could get good amount of high quality data for the training model. Simultaneously, this approach supplies comprehensive and accurate views of talents’ profiles, which is a solid foundation for the matching process. Implementation The above ambitious plan will require feedback and improvement to be carried out successfully. The development stage demonstrates Infosys' expectations, but the area implementation stage will reveal the system's efficiency and adaptability. A testing phase and gathering feedback are required for the implementation in order to have the best scenario initiative. The development team will receive feedback from the managers and talents in some locals and alter the talent management system in response to that feedback. Please see Appendix C for a timeline outlining the steps in the execution process. Development phase is the first stage of Infosys' implementation plan. Due to the operational management system, Infosys has the knowledge and information needed to advance without additional study. The two main tasks of the development phase are to create models for the variables with the greatest impact, and a new talent management system. Both tasks will be developed simultaneously, and later the management system and core value models will be connected. The development phase is anticipated to about three months. Tapping into a Digital Brain: AI-Powered Talent Management at Infosys Page 8 A targeted area will receive the demo system to test it out for three months and provide feedback. The TTF will gather opinions on effectiveness and satisfaction from local talent and managers. All leaders will gather for a meeting to evaluate the new talent management system. The final version will be widely distributed to all branches worldwide after revision. To sum up, Infosys' AI-based talent management system will be utilized in over a year. Tapping into a Digital Brain: AI-Powered Talent Management at Infosys Page 9 References Sawhney, M., Poddar, V., & Kruse, K. (2022). Tapping Into a Digital Brain: AI-Powered Talent Management at Infosys. Kellogg School of Management eBooks. https://doi.org/10.4135/9781529622904 Tapping into a Digital Brain: AI-Powered Talent Management at Infosys Page 10 Appendix A: Process Diagram for Creating and Maintaining the Talent Management System (Sawhney et al., 2022, Exhibit 2) Tapping into a Digital Brain: AI-Powered Talent Management at Infosys Page 11 Appendix B: Decision Matrix and Criteria Criteria Alt. 1 Alt. 2 Alt. 3 Alt. 4 Large-scale Conservative Managers’ Combined data collection data collection filtering approach High-quality input 3 2 0 3 Managers’ satisfaction 0 2 3 2 Accurate talents’ profile 3 2 1 3 Ease of implementation 2 1 2 1 Projects’ goals guaranteed 2 0 3 3 Total 10 7 9 12 Scale: ● 0: No impact or negative effect ● 1: Positive effect ● 2: High positive effect ● 3: Strongly positive effect Decision criteria: ● High-quality input: Will this alternative guarantee high-quality input variable? ● Mangers’s satisfaction: As a main user, will this alternative satisfy the managers? Will this alternative encourage managers to use the system frequently? ● Accurate talents’ profile: Will this alternative provide a complete and objective of talents’ profile? Will talents are evaluated fairly? ● Ease of implementation: Will this alternative requires more research? Will this alternative implement the system quickly? ● Projects’ goals guaranteed: Will this alternative guarantee match between talents and projects? Tapping into a Digital Brain: AI-Powered Talent Management at Infosys Appendix C: Implementation timeline Page 12