Infosys Technologies

Infosys Technologies

Introduction

Infosys Technologies is one of India¡¯s leading software companies , its goal of becoming a globally respected technology and business consulting firm.

Origins and Early Growth of the Indian Computer Industry

The early days of computing in India were dominated by public research organizations.

During the 1970s,Indian software development suffered from paucity of advanced computers.

In 1977,international companies chose to divest their stakes in their local subsidiaries and leave the country.

India had a low per-capita income and yet possessed the second-largest English-speaking scientific manpower reservoir in the world as well as a well-functioning technical education system.

Indian pioneers in the international market was Tata Consultancy Services(TCS).Offering foreign customers contract programming , Indian programmers writing software at customer sites.

Narayana Murthy

Born on August 20,1946,in a middle-class family in the South Indian state of Karnataka,He had earned Bachelor¡¯s and Master¡¯s degrees in Electrical Engineering and Computer Sciences.

He came to believe that ¡°every human being needs incentives to move forward , be it in the from of according money, recognition, or fame. The government is not the instrument to create wealth. It is the job of the government to create an environment and provide for the infrastruc-ture and mindset to create wealth.¡±

In 1981,Murthy and six of his associates found Infosys Technologies with an initial capital of Rupees(Rs.)

Infosys ¡¯ First Decade:1981-1991

Infosys"founders, wanted it to be a company¡± of the professional , for the professional , and by the professional.¡±

What they want

To build a firm that was professionally owned and professionally managed , corporate governance , good employee management , and good ethics.

A firm that promised a ¡°fair deal¡± to all its stakeholders-shareholders , employees , and customers alike .

THE decade of heady Growth: 1991-2000

In 1991, the government launched a program of economic liberalization that relaxed several trade and exchange controls. Murthy referred to India¡¯s 1991 economic reforms as a ¡°seminal point¡± that dismantled the ¡°license-and-permit raj.¡± In February 1993 Infosys tapped the Indian capital market for its initial public offering (IPO).

Then ¡°The entry of MNCs into India was a do-or-die moment for Infosys.¡±

Two options:

1.The first was to lobby the government aggressively to keep the MNCs out .

2.The other option for Infosys was to introspect and understand why potential employees might consider working for Infosys instead of firms such as IBM or Oracle.

Two critical reasons why employees might be attracted to foreign firms were compensation and work-environment.

Overseas Development Centers

Even as the Indian government was easing restrictions, Indian software firms were moving from bodyshopping contracts to off-shore development contracts (ODCs)-Indian programmers writing software in India for foreign companies . Clients benefited from ODCs in two ways-the lower overall cost of software development; and a 24-hour work cycle ( the Indian programmers worked while their U.S Counterparts slept, and vice versa) enabled by broadband communication that allowed rapid implementation of software projects.

ODCs required the software suppliers to control and monitor software development on behalf of the clients.

Infosys was one of the leaders among Indian firms in pursuing ODC opportunities.

overseas development centres

infosy moves from bodyshopping to off-shore develpment contracts.(ODCs)

clients benefited from ODC in two ways,the lower overall costs of software development.and a 24-hour work cycle.ODC required the software suppliers to control and minitor software development on behalf of the clients. infosys management decide, do more work here in local and less work on sites.

GE

GE becomes infosys customer since 1989, accounted 40% of infosys revenues,its largest customers accounted for 10%,the five largest customers for 33% of its total sales¡£and build relationship with other companies to hold business.

Global delivery Model

Managed software solutions -fix time ,fix price projcts with quality guarantees that took away several of risks that clients always faced in outsourcing software projects.

Gain 70% of repeat customers because of infosy delivery.

Collaboration from hign profile clients, such as Nortel , reebok,etc.

Organization structure

1.Organized around nine strategic business units(SBUs)

2.Enpowerment