Infosys startup & success
August 10, 2009
Infosys Technologies Limited is a multinational information technology Services Company headquartered in Bangalore, India. It is one of India’s largest IT companies, with nine development centers in India and over 30 offices worldwide. Infosys employs over 88,601 professionals (as of December 31, 2007). Its annual revenues for the fiscal year 2006-2007 exceeded US$3.1 billion with a market capitalization of over US$30 billion.
Infosys was founded on July 2, 1981 in Pune by N. R. Narayana Murthy and six others:
N. S. Raghavan
S. D. Shibulal
About Mr. Narayana Murthy
Mr. Narayana Murthy was born on August 20, 1946 in Karnataka, India. He obtained his Bachelor of Electrical Engineering (B.E.) from University of Mysore in 1967 and his Master of Technology (M.Tech.) from Indian Institute of Technology (IIT), Kanpur in 1969.
Murthy started the company by borrowing INR 10,000 from his wife Sudha Murthy. The company was incorporated as “Infosys Consultants Pvt Ltd.ﾢﾾﾀ?.
Infosys is established by N. R. Narayana Murthy and seven engineers in Pune, India, with an initial capital of US$ 250.
Signs up its first client, Data Basics Corporation, in New York.
Relocates corporate headquarters to Bangalore.
Opens first international office in Boston, US.
Introduces Employee Stock Options (ESOP) program
Acquires ISO 9001/TickIT certification.
Moves corporate headquarters to Electronics City, Bangalore.
Opens a Development Center at Fremont.
Opens first European office in the UK and Global Development Centers at Toronto and Mangalore. Sets up e-Business practice.
The Infosys Foundation is established.
Opens an office in Toronto, Canada.
Infosys is assessed at CMM Level 4.
Starts enterprise solutions (packaged applications) practice.
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.
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
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.
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.
Establishes subsidiaries in China and Australia.
Expands operations in Pune and China, and sets up a Development Center in Thiruvananthapuram.
Revenues reach US$ 1 billion.
Infosys Consulting Inc. is launched.
Records the largest international equity offering of US$ 1 billion from India.
Selected to the Global MAKE Hall of Fame.
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.
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
Infosys primarily serves the following industries:
- Banking and financial services *Insurance
Banking and financial services is the largest industry served at 30.2%, followed by Telecom at 19.3%
Ingredients for success
infosys operational excellence is its Global Delivery Model (utilizing the best global resources with the lowest associated cost and at the highest possible quality). The resulting ratio of 30:70 onshore/offshore provides a strong customer focus, as well as significantly reduced delivery costs.
Customer satisfaction is another key to Infosys. 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. Such high customer satisfaction rates have resulted in 95% of clients coming back to Infosys for further projects.
Today, Infos The investors are most attracted to those new companies distinguished by their risk/reward profile and scalability. That is, they have lower bootstrapping costs, higher risk, and higher potential return on investment. Successful startups are typically more scalable than an established business, in the sense that they can potentially grow rapidly with limited investment of capital, labor.
Today ﾢﾾﾀﾾﾙsﾢﾾﾀﾾﾙ market capitalization is $30 billion. Revenues have consistently grown at over 50% annually through the past decade
What can we learn from the Infosys experience?
At the core, the creation of a widely respected meritocracy combining engineering excellence with a relentless customer orientation
A no nonsense approach: speed and frugality
A sincere and acute focus on employee satisfaction and skills development
Agility: in a highly competitive environment, adapting constantly and anticipating the future through on-going business process innovation.