Infosys at Crossroads
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Case Code: BSTR430 Case Length: 22 Pages Period: 2009-2013 Pub Date: 2013 Teaching Note: Not Available |
Price: Rs.500 Organization: Infosys Ltd. Industry: Information Technology and Consulting Countries: India Themes: Managing internal and external challenges |
Abstract Case Intro 1 Case Intro 2 Excerpts
Background Note
Infosys Limited was incorporated as Infosys Consultants Private Limited (Infosys) in 1981 in Bangalore by Murthy and six others with a seed investment of US$ 200. At the time of inception, Murthy and his colleagues decided to build an organization that would command the admiration of others. According to Murthy, "We discussed the objectives of the company and decided that we wanted to become India's most respected company. Seeking respect was behind our founding Infosys. We deliberately defocused on revenue and profits. Our goal was to do everything by the book. We realized that if we did the right thing, revenues and profits would come automatically."
Since its inception, Infosys relied heavily on overseas projects. While six of his colleagues went to the US to start working on software development, Murthy stayed in India to obtain a license from the Reserve Bank of India (RBI). Murthy added, “Computers were not easily available in the market. It used to take at least three years to import a computer to India at that point in time. So we decided that some of us would be based in the US to start work. But, even before travelling abroad it took us 10 days to get a permission from the RBI.” Infosys did not have the required space to install many computers, so the computers it purchased were installed in the premises of one of its customers, where the new employees were trained. Products like proprietary banking software were then developed at the site. During this time, Infosys focused on acquiring domain knowledge in segments like retailing, finance, distribution, and telecommunications.
In 1982, the company employed its first set of employees from the Indian Institute of Technology, Madras. These employees were provided training and were sent abroad for onsite projects. After its revenues started increasing, Infosys started spending more on training and product development...
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