Infosys in China
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Case Code: BSTR221 Case Length: 18 Pages Period: 2001-2006 Pub Date: 2006 Teaching Note: Not Available |
Price: Rs.400 Organization: Infosys Industry: Information Technology, and Related Services Countries: China Themes: International Business, Globalization Business |
Abstract Case Intro 1 Case Intro 2 Excerpts
Background Note
Infosys was incorporated as Infosys Consultants Private Limited on July 02, 1981 by a group of seven professionals. From the beginning, Infosys relied heavily on overseas business. One of the founders, Narayana Murthy (Murthy) stayed in India, while the others went to the US to carry out onsite programming for corporate clients. One of Infosys'first clients was the US-based sports shoe manufacturer Reebok. Infosys hired its first set of employees in 1982 from the Indian Institute of Technology, Chennai. 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. The company's revenues in 1982 were at Rs 1.2 million. At this time, computers were not manufactured in India. A task like importing a computer required a license and the process would take several months. 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 and products like proprietary banking software were developed. At the same time, Infosys focused on acquiring domain knowledge in segments like retailing, finance, distribution, and telecommunications. In 1987, Infosys formed a 40:60 joint venture with Kurt Salmon Associates (KSA), a management consulting firm, to expand its marketing efforts in the US...
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