WIN IN THE FLAT WORLD Group 2
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 .
1983 :Relocates corporate headquarters to Bangalore
1987:Opens first international office in Boston, US
1993:Introduces Employee Stock Options (ESOP) program
Acquires ISO 9001/TickIT certification ,Goes public
1994 :Moves corporate headquarters to Electronics City,
Bangalore. Opens a Development Center at Fremont
1995: Opens first European office in the UK and Global
Development Centers at Toronto and Mangalore. Sets up e-
Business practice
1996 :The Infosys Foundation is established
1998 :Starts enterprise solutions (packaged applications)
practice
In 1999, Infosys crossed $100 Million and was listed on
NASDAQ.
2001, Infosys is rated as the Best Employer by Business World
2002: Touches revenues of US$ 500 million ,Nandan M. Nilekani takes
over as CEO from N.R. Narayana Murthy, who is appointed Chairman
and Chief Mentor
In 2006, Infosys completed 25 years of its existence and its revenues
crossed $ 2 billion.
2009:Infosys selected as a member of The Global Dow , Employee
strength grows to over 100,000
What is Infosys..??
Infosys is an information technology service
related company
Situated in Bangalore, India
One of the largest companies in India
1,13,796 employees
Has offices in 22 countries including
China,UK,Australia,Canada etc
History
Founded on 2 July 1981 by seven
entrepreneurs .
N R Narayana Murthy being one of them.
Started the company with initial amount of $
250.
The company was incorporated as "Infosys
Consultants Pvt Ltd”.
Infosys went public in 1993.
History
Initially IPO was undersubscribed got bailed out by
Morgan Stanley.
Then share prices of Infosys from then on have
increased.
Shares were priced at 15600 until 9/11 took place.
Sales and earning compounded at more than 70% a
year.
Won global make awards for 2003 ,2004 &2005
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N.R.Narayana Murthy Eighth
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Infosys
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CEO for 21 years
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STRATEGIES
Body Shopping
Off shoring
Near shoring
Strategic Partnership with key clients
International Strategy
Focus on global and US markets
Confidence building
Listed on Nasdaq
American Depository Receipt (ADR) issues -
2006
''They must feel that Infosys is a very strong company. As we grow stronger we get
noticed better by CEOs and CFOs and their confidence level will go up resulting in
Now in top 100 index (NASDAQ)
more business to our company.
Liquidity of a technological company like Infosys is very important in the international
level”
International Strategy
Capital used for acquisitions
Expert Information Services (Australia)
McCamish Systems LLC (USA)
planning small acquisitions in France and
Germany
“Ever since we were listed on the Nasdaq in 1999, and till the recent American
Depository Receipt (ADR) issue, we have maintained that we will use the capital for
possible acquisitions. We were looking for a company whose values were similar to
those of Infosys.”
SWOT ANALYSIS
STRENGTHS
Capability Maturity Model (CMM) Level 5 Certification in 1999
Highly skilled low cost LABOUR FORCE
Strong FINANCIAL POSITION-$4 billion in 2008
GLOBAL BRAND- Empowering multinational clients
Listed at NASDAQ
Infosys Centre
WEAKNESSES
Lack of high management consultancy space
captured by IBM & Accenture
Managing globally widespread HR
High training costs
OPPORTUNITIES
Hard times - Recession-Clients focus on Cost Reduction & Outsourcing
Revolution in China - New Market
The strategic alliance with Schlumberger, NVIDIA
Offshore service-European & North American companies base their
operations in India
Improved Internet Connection
THREATS
Problems in securing United States Federal
Government contracts in North America
Competition from China & Korea
Strong Global Competitors-Hewlett-Packard
IBM,EDS and Accenture
Global IT players - Infosys has to compete for
GLOBAL DELIVERY MODEL
Processes
Quality
Tools
Knowledge Management
PSPD MODEL
Predictability
Sustainability
Profitability
De-risking
Organizational Culture
Wealth Sharing
Training and Development
Meritocracy
Corporate Social Responsibility
(CSR)
Stock options to employees
Environment
Compliance with GAAP requirements
RESEARCH & DEVELOPMENT
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COMPETITORS
Tata Consultancy Services Ltd.
Wipro Technologies Ltd.
Satyam Computer Services Ltd.
HCL Technologies Ltd.
COMPETITIVE ADVANTAGE
With respect to its Indian competitors-
TALENTED LABOUR FORCE
In the global market-ITS LISTING AT NASDAQ
CURRENT FINANCIAL
SITUATION
On 27th August, Tuesday, reported a 2.4 per cent fall in net
profit in the first quarter of this fiscal year
For the full year, net profit declined 0.27% to Rs 5803.00
crore in the year ended March 2010 as against Rs 5819.00
crore during the previous year ended March 2009.
Sales rose 4.32% to Rs 21140.00 crore in the year ended
March 2010 as against Rs 20264.00 crore during the previous
year ended March 2009.
S A N D
W A R D
A M E NT
H E IV E
A C
Infosys ranked second in The International Association of Outsourcing
Professionals 'Global Outsourcing 100‘
Infosys among Asia's Most Admired Knowledge Enterprises
Infosys Named as a Top Supplier for Sears Holdings Corporation
Infosys listed on Forbes' Asian Fabulous 50 for the fourth consecutive
year
Infosys in Fortune's 100 fastest-growing companies
Infosys, the Best Outsourcing Partner: Waters Rankings 2009
CURRENT SCENARIO
Outsourcing expected to gain momentum
Improving business mix through diversification
Will be at the forefront of the Indian off shoring story
CONCLUSION
• Narayan Murthy is a visionary who applied his leadership
• skills to build one of the biggest IT companies in India.
• Stress on Building and maintaining relationships.
• Innovation is the only means to sustain customer loyalty in
• a flattening world.
• Acceleration of innovation is an imperative that organisation
• should address through well defined framework
