History of infosys

oraganization behaviour project

1. GURUNANAK COLLEGE OF
ARTS,SCIENCE & COMMECE.


NAME: BHIMA
ROLL NO : 25
S.Y.B.M.M
SUBJECT: ORGANISATION
BEHAVIOUR.
DATE:27/2/2011
TOPIC : INFOSYS.




SUBMITTED TO:
PROF. KETAN VIRA

2. HISTORY OF INFOSYS.

Infosys was founded on 2 July 1981 by seven entrepreneurs,
Nagavara Ramarao Narayana Murthy, Nandan Nilekani, Kris
Gopalakrishnan, S. D. Shibulal, K Dinesh and with N. S. Raghavan
officially being the first employee of the company. The founders
started the company with an initial investment of INR 10,000. The
company was incorporated as "Infosys Consultants Pvt Ltd." in
Model Colony, Pune as the registered office.

3. infosys went public in 1993. Interestingly, Infosys IPO was under
subscribed but it was bailed out by US investment banker Morgan
Stanley which picked up 13% of equity at the offer price of Rs. 95
per share. The share price surged to Rs. 8,100 by 1999. By the year
2000 Infosys's shares touched Rs. 310 before the catastrophic
incident of September 11th, changed all that.
According to Forbes magazine, since listing on the Bombay Stock
Exchange till the year 2000, Infosys' sales and earnings
compounded at more than 70% a year. In the year 2000, President
of the United States Bill Clinton complimented India on its
achievements in high technology areas citing the example of
Infosys.
[11]
Infosys will invest $100 million (Rs 440 crore) on
establishing a 20,000-seater campus in Shanghai.
In 2001, it was rated Best Employer in India by Business
Today.Infosys was rated best employer to work for in 2000, 2001,
and 2002 by Hewitt Associates. In 2007, Infosys received over 1.3
million applications and hired fewer than 3% of applicants.
Infosys was the only Indian company to win the Global MAKE
(Most Admired Knowledge Enterprises) award for the years 2003,
2004 and 2005, and is inducted into the Global Hall of Fame for
the same
Read more about the defining moments in Infosys' history.
Milestones
2009
Infosys selected as a member of The Global Dow
Employee strength grows to over 100,000

2008

4. Infosys crosses revenues of US$ $ 4.18 billion
Annual net profits cross US$ 1 billion

2007
Infosys crosses revenues of US$ 3 billion. Employees grow
to over 70,000+
Kris Gopalakrishnan, COO, takes over as CEO. Nandan M.
Nilekani is appointed Co-Chairman of the Board of Directors
Opens new subsidiary in Latin America
Reports Q2 revenue of over US$ 1billion

2006
Infosys celebrates 25 years. Revenues cross US$ 2 billion.
Employees grow to 50,000+
N. R. Narayana Murthy retires from the services of the
company on turning 60. The Board of Directors appoints him
as an Additional Director. He continues as Chairman and
Chief Mentor of Infosys

2005
Records the largest international equity offering of US$ 1
billion from India
Selected to the Global MAKE Hall of Fame

2004
Revenues reach US$ 1 billion

5. Infosys Consulting Inc. is launched

2003
Establishes subsidiaries in China and Australia
Expands operations in Pune and China, and sets up a
Development Center in Thiruvananthapuram

2002
Touches revenues of US$ 500 million
Nandan M. Nilekani takes over as CEO from N.R. Narayana
Murthy, who is appointed Chairman and Chief Mentor
Opens offices in The Netherlands, Singapore and Switzerland
Sponsors secondary ADS offering
Infosys and the Wharton School of the University of
Pennsylvania set up The Wharton Infosys Business
Transformation Awards (WIBTA)
Launches Progeon, offering business process outsourcing
services

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 most influential businessmen in the
world
Infosys is rated as the Best Employer by Business
World/Hewitt

6. 2000
Touches revenues of US$ 200 million
Opens offices in France and Hong Kong, a global
development center in Canada and UK, and three
development centers in the US
Re-launches Banks 2000, the universal banking solution from
Infosys, as Finacle™

1999
Touches revenues of US$ 100 million. Listed on NASDAQ
Infosys becomes the 21st company in the world to achieve a
CMM Level 5 certification
Opens offices in Germany, Sweden, Belgium, Australia, and
two development centers in the US
Infosys Business Consulting Services is launched


1998
Starts enterprise solutions (packaged applications) practice

1997
Opens an office in Toronto, Canada
Infosys is assessed at CMM Level 4

7. 1996
The Infosys Foundation is established

1995
Opens first European office in the UK and Global
Development Centers at Toronto and Mangalore. Sets up e-
Business practice

1994
Moves corporate headquarters to Electronics City, Bangalore.
Opens a Development Center at Fremont

1993
Introduces Employee Stock Options (ESOP) program
Acquires ISO 9001/TickIT certification
Goes public

1987
Opens first international office in Boston, US

1983
Relocates corporate headquarters to Bangalore

8. 1981
Infosys is established by N. R. Narayana Murthy and six
engineers in Pune, India, with an initial capital of US$ 250
Signs up its first client, Data Basics Corporation, in New
York .

Vision:
To be a globally respected corporation that provides best-of-breed
business solutions leveraging technology delivered by best-in-class
people.




Mission:

To achieve objectives in an environment of fairness, honesty, and
courtesy towards clients, employees, vendors andsociety at large.

9. Headquarters &Branches

Its corporate headquarter is situated in Bangalore

10. Branches in India
 Bhubaneshwar
 Chennai
 Jaipur
 Mysore
 Chandigarh





 Hyderabad
 Mumbai
 Thiruvananthapuram
 New Delhi
 Gurgaon
 Pune



Branches in abroad
 America
 Australia
 Europe
 Middle East Africa

12. Overall number of employees

Infosys and its subsidiaries have 103,905 employees as on June 30,
2009.


Turnover

Infosys with a turnover of $753 million in the last financial year,
has a market cap of $12.13 billion.

Organization structure

Infosys Members of the Board

Srinath Batni
Director and Head,
Delivery Excellence

K.Dinesh
Director and Head,
Communication
Design Group,
Information Systems
and Quality and
Productivity
T.V. Mohandas Pai
Director and Head,
Finacle, Admin,
Human Resources,
Infosys Leadership
Institute and
Education and
Research

S.D. Shibulal
Chief Operating
Officer and Member
of the Board


S.Gopalakrishnan
Chief Executive
Officer and Managing
Director

N.R.Narayana
MurthyChairman of
the Board and Chief
Mentor

13. Independent Directors

Rama Bijapurkar
Independent Director

Dr.Omkar Goswami
Independent Director

Sridar Iyengar
Independent Director

David L.Boyles
Independent Director

Deepak M.
Satwalekar
Lead Independent
Director


Dr.Marti G.
Subrahmanyam
Independent Director

Claude Smadja
Independent Director


K.V. Kamath
Independent Director

Jeffrey Sean Lehman
Independent Director

14. Business and Department Heads

V. Balakrishnan
Chief Financial Officer, Infosys Technologies

Subhash Dhar
Senior Vice President and Head, Global Sales, Alliances and Marketing
Head, Communications, Media and Entertainment, Infosys Technologies
Executive Council Member

B.G. Srinivas
Senior Vice President, Manufacturing; Product Engineering; Product Lifecycle
and Engineering Solutions, Infosys Technologies
Executive Council Member

Chandra Shekar Kakal
Senior Vice President and Global Head, Enterprise Solutions, Infosys
Technologies
Executive Council Member



Ashok Vemuri
Senior Vice President and Global Head, Banking and Capital Markets; Strategic
Global Sourcing, Infosys Technologies
Executive Council Member

Amitabh Chaudhry
Chief Executive Officer and Managing Director, Infosys BPO
Head, Independent Validation Solutions, Infosys Technologies

M.D. Ranganath
Chief Risk Officer, Infosys Technologies

Prabhakar Devdas Mallya
Vice President and Head, Security Audit and Architecture, Infosys Technologies

Dheeshjith V.G.
Head, New Markets and Services, Infosys Technologies
Member of the Board, Infosys Australia and Infosys China

15. Girish G Vaidya
Senior Vice President and Head, Infosys Leadership Institute

Subrahmanyam Goparaju
Vice President and Head, Software Engineering and Technology Labs (SETLabs),
Infosys Technologies

Nandita Gurjar
Senior Vice President and Group Head, Human Resources, Infosys Technologies

Binod Hampapur Rangadore
Senior Vice President and Head, India Business, Infosys Technologies

Ritesh Idnani
Vice President and Head, Global Sales



Business and Department Heads (cont


Ramadas Kamath U.
Senior Vice President, Administration,
Commercial Facilities, Infrastructure and Security, Infosys Technologies


Jackie Korhonen
Managing Director and Chief Executive Officer, Infosys Technologies, Australia



K. Murali Krishna
Vice President, Computers and Communications Department, Infosys
Technologies

Satyendra Kumar
Senior Vice President, Quality, Tools and Software Reuse, Infosys Technologies

16. Haragopal Mangipudi
Vice President and Head, Finacle, Infosys Technologies
Sridhar Marri
Vice President, Communication Design Group, Infosys Technologies

Srikantan Moorthy
Vice President and Head, Education and Research, Infosys Technologies

Stephen R. Pratt
CEO and Managing Director, Infosys Consulting
Head, Consulting Solutions, Infosys Technologies

Suryaprakash K
Vice President, Information Systems, Infosys Technologies


Sanjay Purohit
Vice President and Head, Corporate Planning and Business Assurance, Infosys
Technologies

Pravin Rao
Senior Vice President, Retail, Consumer Packaged Goods, Logistics and
Infrastructure Management Services, Infosys Technologies
Director, Infosys Australia

Eric Paternoster
Senior Vice President and Head, Insurance, Healthcare and Life Sciences, Infosys
Technologies
Director, Infosys BPO
Director, Infosys Technologies, Sweden


Prasad Thrikutam
Senior Vice President and Head, Energy, Utilities and Services, Infosys
Technologies
Director, Infosys China

17. Culture of Infosys:

Life here at Infosys is brimming with events - where employees
can pursue their interests in areas as varied as arts, culture, or
sports. The objective is to ensure that employees are not confined
to their desks. Employees express their various skills and interests
through forums that include an "Art Gallery" on campus dedicated
to displaying the works of Infoscions, daily quiz competitions, and
regular music meetings that keep the place abuzz with creativity.

Inculcom is the base organization that hosts cultural programs for
Infoscions. Each event emphasizes a specific area like music,
dance, or quiz. These programs are generally not competitive, but a
competitive element is sometimes added to enhance enthusiasm
and to bring out the best in our people. Under Inculcom, there are
sub groups like the IQ Circle (Quizzes), Shruthi (the classical
music club), Dramatix (the drama club), and Vakchaturya (forum
for self development).
The key to employee involvement in organizations is the sharing of
information about business performance, plans, goals, and
strategies. What happens by a shout across the corridor in a smaller
organization, calls for a more systematic process in a large
organization like ours.

InSync is our internal communication program focused on keeping
the Infoscion abreast of latest corporate and business
developments, and equipping him or her to be a "brand
ambassador" for the company. This program combines a
communication portal with workshops, monthly

18. newsletters, articles, daily cartoons and brainteasers to synchronize
each Infoscion with the organization.
The spirit of innovation, continuous personal and professional
development and excellence is most evident in how the company
builds and manages physical, technology, or people infrastructure
or in financial, marketing, and quality practices.
Initiatives such as the Infosys Leadership Institute are meant for
ongoing management development and personal improvement. A
host of technology advancement and other ongoing training
programs meet the different learning needs of employees in
specific areas of technology, management, leadership, cultural and
communication skills, and other soft skills.

19. H.R PLANNING :
Recruitment Targets for Infosys:

YEAR NO.OF
EMPLOYEES

2001 10000
2002 11000
2003 13000
2004 15000
2005 18000
2006 25000
2007-2008 35000


According to T.V. Mohandas Pai, head of human resource
development and education and research, Infosys, the company

20. added 5,947 employees (net addition 2,586) in fourth fiscal quarter
of 2007-2008, and 33,177 employees (net 18,946) in the full year.
In the ongoing year, the company plans to hire 25,000 people
(8000 lower than last year) with nearly 18,000 people to be hired
from various campuses in the country, taking the total number of
employees from the present 91,187 to over 100,000, he said."We
have already made campus offerings of 18,000 for this fiscal," Pai
said. The company also plans to hire as many locals in the US,
Europe, Australia, China and Mexico where it has set up
development centers, he continued.
The attrition rate has come marginally to 13.4 percent in fiscal
2008 as against 13.7 percent during the previous period, while the
utilization rate has been at 76 percent as against 68.4 percent
during the previous corresponding period, he added.The average
salary hike this year would be between 11-13 percent (compared to
12-15 percent announced last year) for its Indian employees and 4-
5 percent for overseas employees, Pai said.
Nonetheless, the wage hike for the Indian staff would shave off 2.3
percent from the company's profit margins in the June quarter,
while costs of processing visas would impact margins by 80 basis
points (0.80 percent) in the same quarter, V. Balakrishnan, CFO,
Infosys, said.Infosys has a training center in Mysore with a
capacity to train 13,500 candidates every quarter - the largest
training facility in the world. The campus also provides
accommodation for 10,000 candidates and teaching staff.The
company, which has been investing about Rs.700 crore ($175
million) each year towards training its employees, plans to invest
Rs.1,000 crore ($250 million) more towards training next fiscal,
Pai said.

21. Last year, over 1.3 million people applied for a job at
Infosys. Only 1% of them were hired. In comparison,
Harvard College took in 9% of candidates.
Infosys has always focused on inducting and educating
the best and the brightest. With global hiring practices,
coupled with ever-expanding university programs such as
Campus Connect and development centers across the
globe, Infosys is able to source and nurture talent while
delivering lasting value to clients.
Infosys, which trains over 15,000 new recruits every year,
is well prepared to win the battle for top-notch talent. At
the heart of this education program is a fully equipped
$120 million facility in Mysore, about 90 miles from
Bangalore.
HR policies in infosys

Internally developed code of conduct and policies to guide us
The following policies on various sustainability issues are adopted
uniformly through out the reporting entity
.
HIV (+) & AIDS CONTROL POLICY
Infosys would take measures to prevent the incidence and spread
of HIV and AIDS in the
society. In case of need, the company would arrange to provide
counseling and medical
guidance to these patients and their families.

22. QUALITY POLICY

Consistent with the group purpose, Infosys shall constantly strive
to improve the quality of life of the communities it serves through
excellence in all facets of its activities. We are committed to create
value for all our stakeholders by continually improving our
systems and processes through innovation, involving all our
employees. This policy shall form the basis of establishing and
reviewing the Quality Objectives and shall be communicated
across the organization. The policy will be reviewed to align with
business direction and to comply with all the requirements of the
Quality Management Standard.

ENVIRONMENTAL,
OCCUPATIONAL HEALTH &
SAFETY POLICY
Infosys reaffirms its commitment to provide safe working place
and clean environment to its employees and other stakeholders as
an integral part of its business philosophy and values. We will
continually enhance our Environmental, Occupational Health &
Safety (EHS) performance in our activities, products and services
through a structured EHS management framework. Towards this
commitment, we shall;

* Establish and achieve EHS objectives and targets.
* Ensure compliance with applicable EHS legislation and other
requirement and go beyond.
* Conserve natural resources and energy by constantly seeking to
reduce consumption and promoting waste avoidance and recycling
measures.
* Eliminate, minimize and/or control adverse environmental
impacts and occupational health and safety risks by adopting

23. appropriate "state-of-the-art" technology and best EHS
management practices at all levels sand functions.
* Enhance awareness, skill and competence of our employees and
contractors so as to enable them to demonstrate their involvement,
responsibility and accountability for sound EHS performance.

HUMAN RESOURCE P OLICY

Infosys recognizes that its people are the primary source of its
competitiveness. It is committed to equal employment
opportunities for attracting the best available talent and ensuring a
cosmopolitan workforce. It will pursue management practices
designed to enrich the quality of life of its employees, develop
their potential and maximise their productivity. It will aim at
ensuring transparency, fairness and equity in all its dealings with
its employees. Infosys will strive continuously to foster a climate
of openness, mutual trust and teamwork.

ALCOHOL AND DRUGS POLICY

Infosys believes that the loyalty and commitment of its employees
depend upon the quality of life they are offered at work and at
home. We recognize that indiscriminate use of alcohol and drugs is
injurious to the wellbeing of individuals, their families and the
community as a whole. We acknowledge that the misuse of these
psychoactive substances is a major health and safety hazard.
Infosys is therefore committed to creating an alcohol and drug-free
environment at the work place. This would be achieved through
the involvement of all employees and the Joint Departmental
Councils in spearheading appropriate initiatives. The initiatives
would
include;

24. * Raising awareness, through the dissemination of information,
education and training and by promoting healthy life styles among
our employees and their families.
* Motivating those employees who have an alcohol/drug problem,
to seek assistance, while maintaining confidentiality about such
cases.


GROWTH OF INFOSYS:

One element of Infosys’ operational excellence is its Global
Delivery Model, based on doing work where it adds most value –
that is, utilizing the best global resources with the lowest
associated cost and at the highest possible quality. Reliable
telecom infrastructure and India’s low-cost skilled manpower
allowed most of the work to be conducted offshore. Onsite aspects
of the project are limited to those aspects requiring market
proximity and customer interaction. The resulting ratio of 30:70
onshore/offshore provides a strong customer focus, as well as
significantly reduced delivery costs. Thus, close to 45,000 Infosys
employees are based in India.
Customer satisfaction is another key to Infosys’ breakneck rate of
profitable growth. Over a 25-year period, the company has
successfully completed more than 20,000 projects with a 99.998%
error-free record. Over 93% of the projects were delivered on time
and on budget, far above the industry average of 30%. Such high
customer satisfaction rates have resulted in 95% of clients coming
back to Infosys for further projects.
Building on such exceptional customer satisfaction, Infosys
proactively seeks to expand the scope of the work it does with
existing clients, further fueling revenue growth. Infosys fully

25. understands that in the business of outsourced services, lower cost
alone is not sufficient. Quality, reliability, speed and customer
orientation are fully part of the equation.
Infosys’ concern to provide its customers with a competitive
advantage led to the creation, in 2001, of the Corporate R&D unit
SETLabs (Software Engineering and Technology Laboratories).
This unit develops methodologies, frameworks and tools to drive
efficiency in project execution and delivery. SETLabs help clients

with development projects, addressing specific technology or
business problems, while also looking into radical innovations and
long-term strategic issues supporting business process innovation
for the customers. By mid 2007, SET Labs had grown to 500
consultants and software engineers, filing numerous patent
applications.
Concerning staff training, Infosys massively invests in technical
and management education. Young staff joining the firm typically
follows a four month course. This is carried out in Infosys’ training
center in Mysore, West of Bangalore, where 6 000 employees can
be trained simultaneously. This contributes to Infosys having a
staff much lower staff turnover than is typical in the industry.
Today, Infosys’ market capitalization is $30 billion. Revenues
have consistently grown at over 50% annually through the past
decade. As a result, it took 23 years for Infosys to reach $1 billion
in revenues, but only 23 months to reach the $2 billion mark.

26. DEVELOPMENT OF INFOSYS:


Developing competencies is usually an internal process that is
driven by the behaviors of high-performers, as well as an internal
view of what makes these individuals successful. For companies in
the service economy, there is another important constituency; "the
end-users" of the company's talent - that can be brought into the
process.
Infosys has rapidly grown into one of the largest IT companies in
the world. Headquartered in India, the company serves clients
worldwide and needs to improve those clients with qualified, well-
trained talent. Infosys also has an excellent reputation within the
L&D community, providing its new employees with first-rate
educational opportunities.
One way to meet challenges in the Flat World is to merge your
existing in-house R&D models into one that includes an eco-
system of partners.
Other challenges facing companies include how to achieve on-time
development to meet the opportunity window, a need to achieve
operational efficiency (high quality and reduced cost of
development and overcoming resource constraints in terms of skill
sets and infrastructure.
The Infosys R&D labs have undertaken more than 1,000 projects
in the past few years and have zero IP infringement lawsuits in the
25 years since Infosys' inception. Our R&D labs can help you stay
ahead of the innovation game by helping you to realize the
following benefits:
Predictability in enhancing your time-to-market

27. Increase your profitability by sustaining innovation and
reducing the cost of ownership
Increase and sustain your ability to innovate rapidly
Innovate to create a unique differentiator for your product
Ensure rapid concept-to-systems development to derive the
best benefits
Predictability in enhancing your product's quality




CHANGES IN INFOSYS:


Infosys is not amused by reports that it will see changes at the
company's helm in the immediate future. In an exclusive chat,
CEO S Gopalakrishnan drew a distinction between strategic HR
changes and full-blown overhauls, reports CNBC-TV18’s Sunanda
Jayaseelan.
The winds of change are blowing through the IT industry. Wipro
has just re-jigged its top management, and analysts are accepting
the possibility that US based cognizant will beat Wipro's revenues
in the next couple of quarters.
But bellwether Infosys says it is in a comfortable position. It adds
that while there may be some changes internally, there will be no
changes like the one Wipro has made. It also says it has a strong
plan in place.
However, Infosys is making some changes in its HR policies.
Under a programme called Talent Strategy 2015, it is reviewing its

28. talent retention plans, and aims to rein in attrition from the current
17.5% to a more manageable 10%.
This programme, designed to be implemented over the next 5
years, will take consensus on company policies from the
employees.

CONCLUSION:

The company declared fairly good results for 2009 with a topline
and bottom line growth of around 30%. The ROE has been
maintained at 30%+ levels and in addition the company continues
to hold almost 10000 Crs of cash on its books.

The company continues to maintain one of the highest net margins
(around 30%) in the industry. In the addition the various asset
ratios such as fixed asset turns and working capital turns continue
to be maintained at very high levels (in excess of 5). The positives
of the company are apparent. The company has very high margins,
high returns on capital, has shown extremely high growth rates in
the last 10 years and has one of the best managements in the
country.
The positives of the company as far as the financial parameters are
concerned are also the risks faced by the company. Contrary to the
media reports, I don’t consider the recession to be a serious issue
for the company in the long run.

The recession is bound end sooner or later. The company has
substantial scale to ride out the recession. Inspite of the huge drops
in the IT services market the company has been able to maintain its

29. ROE and other financial ratios. At the same time, the company has
now grown into a 4.5 billion dollar company and now competes
with the likes of accenture and IBM.

Companies like accenture earn net margins in the range of 8-10%
(with ROE in excess of 50%). These companies are fairly
profitable companies in their own right, however not as obscenely
profitable as the Indian vendors such as Infosys.

I personally feel, the tier I vendors have a good business model and
will be able to do well in the long run. However their margins and
profitability should eventually converge to the same levels as their
foreign counterparts as they really don’t have any special
competitive advantage over their foreign competitiors.

The above convergence could result in decent topline, but a lower
bottom line growth
Management compensation : Management compensation seems
to be fair. The CEO and top managers make less than 1% of the net
profit. In addition the promoters/ managers have never awarded
themselves any stock options till date. The company has always
exceeded their guidance (although they under commit everytime).
The company has performed quite well for the last 10+ years and
have managed the growth fairly well.
Infosys is now a mature, well run company with above average
growth. It has a shareholder friendly and competent management.
The company should provide decent returns in the long run, but
one should not expect very high returns.