INFOSYS : THE SEARCH FOR THE BEST AND THE BRIGHTEST

Presented By:Bhumil Rustagi 0121pg011Chirag Ranjan 0121pg053Ankit Yadav 0121pg019Sankalp 0121pg102Brajesh 0121pg065Kundan 0121pg032Praveen 0121pg088

INTRODUCTIONInfosys founded in Pune in 1981,presently

headquartered in bangalore.Infosys is a global technology firm that

defines,designs,and delievers IT–enabled, end to end business solutions that leverage for its clients in financialservices,manufacturing,telecommunication,retail,utilities,logistics and other industries.

Indian software companies executed most of their software projects end to end at overseas locations and Infosys believed it can perform this function much more cost-efficiently if it has access to local talent.

HISTORYMr. MURTHY the founder along with six

friends, began the idea of Infosys with a meeting in the bedroom of his small apartment.

They stated their mission; to be the best, the biggest or the most profitable company, but to earn the respect of all our stake holders.

In 1981 they started out with 7 people with 250 $ and had just one customer.

GROWTH In the first decade finishing 1991 with

revenues of $ 3.89 million, fueled by the growing adoption of free market principles let to accelerated growth.

In the fiscal year 1998-99 the revenue increased to about $ 121 million.

And by fiscal year 2007 companies revenue passed $ 3.1 billion with the net income of $ 850 million.

Employees from seven to more than 72000 worldwide was not an easy task but as they adopted the “Global Delivery Model” helped a lot to develop and deliver software solutions.

Cont.With this growth they established

30 offices worldwide charged with customer relationship management.

CORE COMPETENCYGrandest vision depends on the success of

smallest details.The evolution and success of Infosys :

◦ It took the company 23 years to become a $ 1 billion company but only 23 months to double that.

• Also building an organization can position the company to capitalize on the premise of globalization namely:

1. Sourcing capital from where it is cheapest .2. Producing where it is most cost effective.3. Selling where it is most profitable.

All without being constraint by national boundaries said by “Narayana Murthy”.

Cont. In 2003 the company launched a global talent

program to recruit job candidates from around the world.

New recruits are brought to India for a 6 months training and orientation program and then return to their home countries as local agents.

In the case of Infosys, senior executives, a small component themselves, gather knowledge of the company whose core competency include human intellect and learning through :◦ Observation◦ Data collection◦ Analysis◦ Conclusion

EMPLOYMENT RAISED - RECRUITING In 2006 the company had started out with

annual salaries of about $ 5000, more than 1.4 million people put in an application.

Each applicant was to pass an exam made up of math equation and logic puzzles designed to assess their aptitude.

Their recruiting policy was different from other companies as the other companies had not been investing enough in people rather than train them they let them go.

Infosys CEO Nandan Nilekani said “our people are our capital, the more we invest in them the more they can be effective”.

Thus Infosys devotes $ 65 of every $ 1000 in revenue to training programs and educational initiatives.

PRESENT ENVIRONMENTInfosys profitability is attracting

new rivals from around the world and is accelerating motivation to its domestic competitors to work harder.

The fast moving global competitors including Wipro, IBM, TCS, Accenture, Cisco and Cognizant, were operating to offer high offshoring solution.

3 CRITICAL CHALLENGES Biggest challenge is to become proactive problem-

definer rather than be reactive problem-solver, offering IT solutions to the customers.

The second challenge is to become more and more multicultural, for this challenge they have increased their software development to IT sales and marketing also transferring employees from India to other countries which was not an easy task.

The third challenge was to continue to retain the soul of a small organization in the body of a large organization.

Infosys ever humble but sincerely confident, believes it has built an organization that can successfully take these challenges head onto, as its CEO declares “win in a flat world”.

QUESTIONSQ. 1 Can Infosys continue at this rate of growth

in terms of sales and employees and still retain its founding values.

Ans. Yes we think, because Looking at their international training

programs are diversifying the labor pool around the world as Infosys employees represent 57 nationalities who speak 40 languages.

Expansion of its services in areas like manufacturing, financial services, retail etc. are increasing revenue day by day.

Infosys devotes $ 65 of every $1000 in revenue to training programs for its employees.

As they decided to source capital from where it is cheapest, producing where it is cost effective and selling where it is most profitable.

Q. 2 What organization problems do you think will prove particularly troublesome to executives at Infosys ?

Ans. • Organization culture refers to the set of

values and norms that is shared among employees. These set of values and norms were getting less concentration for the employees in India in comparison with the local agents outside India.

• As their hierarchy went on increasing they were confused in specifying the arrangement of roles, responsibilities and relationship of employees.

Q. 3 Consider the options presented in the chapter regarding structural design, coordination and control in corporate culture.

• Ans. Infosys coordinate and control the value activities, responsibility for certain activities from operating units, such as human resources,finance,science and technology, government affairs etc.

• Infosys follows contemporary structure ,arrrange roles, responsibilities and relationships in ways that eliminates the external boundaries that block the development of knowlegde-generating and decision making relationships.

Q. 4 What do you think was the key event in the organizational evolution of Infosys ? What do you think the Infosys organization will look in 2015 ?

Ans. According to us the key event was their investment in their employees in training programs and educational initiatives. They believed their people are their real capital.

Infosys in 2015

The company will explore more in terms of employees, revenue and more training programs globally.

There is a rapid change in international environment that separate countries where Infosys settled their local agents in the other countries for sharing values that make up its culture by 2015.

Q. 5 Given what you have read, do you think you would like to work for Infosys ? Why or why not ?

Ans. Yes, the reasons are :Expansion of their services in different

areas.Worldwide orientation programs for their

employees.Increase in sales revenue every year that is

consistent growth.Believes in investing in people as “They are

the actual capital”.They provide global software solutions.

THANK YOU