Infosys_ Roopak Tyagi

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Indias best managed

company Business Today

and AT Kearney

Indias most admired

company Business Week

Role model in corporate

governance Forbes

Worlds most respected

companies FT

Amongst the 40

companies that are

reshaping the global

economy - WIRED Magazine

Global Most Admired

Knowledge Enterprise

(MAKE) Hall of Fame

By

-ROOPAK TYAGI

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Background Of The Company

The idea was born on a January 1981 morning

On July 2, 1981, Infosys Consultants Pvt. Ltd was incorporated.

The starting capital was $250 which was borrowed from Mrs

Sudha Murthy

The 6 people who were with Narayan Murthy were:

Nandan Nilekani

N S Raghavan

S Gopalakrishnan

S D Shibulal K Dinesh

Ashok Arora

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Background Of The Company

Infosys (formerly Infosys Technologies) is an

Indian multinational provider of business

consulting, information technology, software

engineering and outsourcing services.

It is headquartered in Bangalore, Karnataka.

Infosys is the third-largest India-based IT services company by

2012 revenues, and the second largest employer of H-1B visa

professionals in the United States, as of 2012.

On 28 March 2013, its market capitalization was $30.8 billion,

making it India's sixth largest publicly traded company.

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Background Of The Company

Now on its client list are a number of Fortune 500 companies

First Indian company listed on the NASDAQ

Infosys has a global footprint with 65 offices and 74

development centers in US, India, China, Australia, Japan,

Middle East, UK, Germany, France, Switzerland, Netherlands,

Poland, Canada and many other countries.

Infosys and its subsidiaries have 156,688 employees as on

March 31, 2013.

Infosys takes pride in building strategic long-term clientrelationships. 97.8% of our revenues come from existing

customers

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Offices

The product of Infosys are directly transferred to concern

companies. But the places in India where these products are

developed are:

1Bangluru

2 Pune

3 Chandigarh

4 Gurgaon

5 Chennai

6 Mysore7 Mumbai

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Milestones

Infosys is established by N. R. Narayana Murthy and six engineers in Pune,India, with an initial capital of US$ 250 (1981)

Infosys got its first joint venture partners in Kurt Salmon Associates.

Attribution,America(1987)

Signs up its first client, Data Basics Corporation, in New York

Opens first international office in Boston, US (1987) Acquires ISO 9001 (1993)

Moves corporate headquarters to Electronic City, Bangalore (1994) Opens first European office in the UK and global development centers at

Toronto and Mangalore (1995)

Opens an office in Toronto, Canada

Infosys is assessed at CMM Level 4 (1997)

Touches revenues of US$ 100 million. Listed on NASDAQ

Infosys becomes the 21st company in the world to achieve a CMM Level 5certification

Opens offices in Germany, Sweden, Belgium, Australia, and two developmentcenters in the US

Infosys Business Consulting Services is launched (1999)

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Milestones 2000

Touches revenues of US$ 200 million

Opens offices in France and Hong Kong, a global development center inCanada and UK, and three development centers in the US

Re-launches Banks 2000, the universal banking solution from Infosys, asFinacle

2001

Touches revenues of US$ 400 million. Opens offices in UAE and Argentina,and a development center in Japan

N. R. Narayana Murthy is rated among Time Magazine/CNN's 25 mostinfluential businessmen in the world

2002

Touches revenues of US$ 500 million

Nandan M. Nilekani takes over as CEO from N.R. Narayana Murthy, who isappointed Chairman and Chief Mentor

Opens offices in the Netherlands, Singapore and Switzerland

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Milestones 2003

Establishes subsidiaries in China and Australia

Sets up a development center in Thiruvananthapuram

2006

Infosys celebrates 25 years. Revenues cross US$ 2 billion. Employees growto 50,000+

N. R. Narayana Murthy retires from the services of the company onturning 60. The Board of Directors appoints him as an Additional Director.

He continues as Chairman and Chief Mentor of Infosys 2007

Infosys crosses revenues of US$ 3 billion. Employees grow to over 70,000+

Kris Gopalakrishnan, COO, takes over as CEO. Nandan M. Nilekani isappointed Co-Chairman of the Board of Directors

2010

Infosys crosses the US$ 5 billion revenue mark Employee strength grows to over 100,000

2011

N. R. Narayana Murthy hands over chairmanship to K V Kamath

Infosys crosses US$ 6 billion revenue mark, employee strength grows to

over 130,000

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Services Offered

Aerospace & Defense

Airlines Automotive

Communication Services

Consumer Packaged Goods

Education

Energy

Financial Services

Healthcare

High-Tech

Hospitality and Leisure

Industrial Manufacturing Life Sciences

Logistics and Distribution

Media & Entertainment

Publishing

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Growth

The turnover of the company has steadily increased

It grossed more than Rs 31,250 crores by March 2012

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Growth

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Revenue Break Up

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The Infosys Strategy Global Delivery Model

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The Infosys Strategy Global Delivery Model

Projects are divided into components and areexecuted independently and concurrently at clientsite and partly at the development centers

The components are then integrated into high qualityrobust solutions.

Development centers that are spread across differentcountries allow Infosys to leverage time zones. ie . It

can have 24 hour workdays. By this model project managers are ensured of total

control .

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Strategic Alliances(Agreement)

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Acquisitions

In December 2003, Infosys had acquired Australia-based IT

service provider Expert Information Services for $23

million.

In December 2009, Infosys BPO acquired Atlanta-based

McCamish Systems for about $38 million.In January 2012, Infosys BPO acquired Australia-based

Portland Group, provider of strategic sourcing and category

management services, for about AUD 37 million.

In September 2012, Infosys acquired Switzerland-based Lodestone Management Consultants for about $345

million.

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SWOT ANALYSISStrength

Proven Global delivery model

Commitment to superior quality and process execution

Strong Brand and Long-Standing Client Relationships

Status as an employer of choice

Innovation and leadership

Weakness Excessive dependence on US for revenues 67 % of

revenues from USA

Weak player in domestic market. Only 1 % of revenues

from India low as compared to peers

Low R & D spending as compared to global IT companies

only 1.3 % of total revenues

Opportunity Domestic market set to grow by 20%.

Expanding into new geographies Europe, Middle East, etc

Infosys is cash rich - Acquiring companies to increaseexpertise in Consultancy, KPO and package implementation

capabilities

Opening offices and development centers in cost

advantage countries.

Threats The economic environment, pricing pressure and rising

wages in India and overseas

Intense competition in the market for technology services

could affect cost advantages.

High dependency on a small number of clients, and the

loss of any one of the major clients could significantly impact

business.

Currency fluctuations

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GENERIC STRATEGIES

To maintain low-cost advantage they have opened offices in

Czech Republic, Mauritius, Poland, Philippines, Thailand and

Mexico.

Invested in developing training centers.

Improved quality capabilities CMM level 5i company.

Low cost Global delivery 24/7 Model

Focus on quality, customer relationship management, timely-

delivery.

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SOCIAL ACTIVITIES:

Infosys has set up a foundation in Karnataka with the name of

Sudha Murthy Foundation. This foundation provides the

education, food and shelter to the needy people . This institute

also helps in construction of hospitals, roads and helps the

women to learn knitting . Infosys has also set up a library in everyKannada Medium Schools.

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The primary purpose of corporate leadership is to

create wealth legally and ethically

N. R. Narayana Murthy

Chairman of the Board and Chief Mentor

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