Evolution of Infosys*



Case Code : CLBS034
Publication date : 2004
Subject : Business Strategy
Industry : Information Technology
Length : 03 Pages
Price : Rs. 50

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Key words:

Infosys, PSPD, Y2K Projects, Cambridge Technology Partners, Nasdaq, American Depository Receipts (ADR), Distribution Management Application Package (DMAP), Kurt Salmon Associates (KSA)

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The caselet looks into the creation of Infosys in 1981 and how Narayana Murthy and his team turned this small software development venture into one of the leading companies of the country. The caselet explains the strategies that Murthy adopted to make Infosys a globally recognized name in the information technology industry.


 » Factors that contributed to the success of Infosys.
 » The role of leadership in making an organization successful.
 » Role of alliances in facilitating an organization to build credibility in the market.


In February 2001, Infosys Technologies Ltd. (Infosys) was voted as the best managed company in Asia in the Information Technology sector, by Euromoney’s Fifth Annual Survey of Best Managed Companies in Asia.

Infosys was started in 1981, with an equity capital of Rs.10,000 brought by seven professional entrepreneurs led by Narayana Murthy, Chairman and CEO of Infosys. By 2000, Infosys’ market capitalization reached Rs.11 billion. By 2001, Infosys was one of the biggest exporters of software from India.

From the beginning, Narayana Murthy focused on the world’s most challenging market - the US. He had two reasons for this. First, there was no market for software in India at the time. He believed that Indian software companies should export products in which they had a competitive advantage...

Questions for Discussion:

1. Infosys is one of the biggest exporters of software from India. Describe briefly, how Infosys reached this enviable position?

2. Narayana Murthy tried to position Infosys as a true global company. What are different features of the global strategy he used in this positioning effort?