Narayana Murthy and InfosysThe Strategist Contd...However, analysts felt that for this, Infosys would have to compete with big companies like Cambridge Technology Partners or even Andersen Consulting, and that could be tough. Agreed Narayana Murthy, "Yes, it is not going to be easy. But we don't have to be unduly concerned about unmitigated success. We may succeed in some and not in others – which is not to say that we will not succeed as consultants." The third feature of the was the PSPD. According to Narayana Murthy, there are four fundamental tenets of any well-run business. One: predictability of revenues; two: sustainability of the predictions; three: profitability of revenues; and four: a good de-risking model. 'De-risking' meant that Infosys had put limits on its exposure to businesses of various kinds. For instance, it limited its exposure to Y2K projects to less than 25% of its total revenues because this was a business that could disappear overnight and Infosys didn't want to take the risk.
Infosys was one of the first companies to adopt an employee stock option plan (ESOP) and create additional wealth for its employees. Narayana Murthy believed that employees created wealth and unless Infosys had a mechanism to make them principal shareholders, it was unlikely to grow. By 1997, 500 employees were awarded stock under the ESOP. By 2001, Infosys had about 2000 rupee millionaires on its staff and more than 213-dollar millionaires. Analysts felt that Infosys had one of the best reward systems in the industry. Most employees in Infosys were paid high salaries by industry average for software companies. Narayana Murthy said, "My employees seek challenging opportunities, respect, dignity and the opportunities to learn new things. I keep telling them that my assets are not this building, the business or foreign contact. My assets – all 8000 of them – walk out of the gate every evening and I wait for them to come back to me the next morning."12 Employees were encouraged to communicate with each other and with the higher management about interesting ideas and ways of solving problems through the electronic bulletin boards. 12] Business Standard – Strategist, December 2000. |
Case DetailsCase Code : LDEN003 Free Case Studies
Business Strategy Micro Case Studies
Business Environment Free Resources
Micro Case Studies Case Related Links
Best Selling Case Studies |