Infosys Limited (formerly Infosys Technologies Limited) is an Indian multinational corporation that provides business consulting, information technology and outsourcing services. It has its headquarters in Bengaluru, India.
Infosys is the second-largest Indian IT company by 2017 revenues and 596th largest public company in world in terms of revenue. On June 30, 2017, its market capitalisation was $34.33 billion. The credit rating of the company is A- (rating by Standard & Poor's).
Infosys was established by 7 engineers in Pune, India with an initial capital of $250 in 1981. It was registered as Infosys Consultants Private Limited on July 2, 1981. In 1983, it relocated its office to Bengaluru.
Name Change: The company changed its name to Infosys Technologies Private Limited in April 1992 and to Infosys Technologies Limited when it became a public limited company in June 1992. It was later renamed to Infosys Limited in June 2011.
Share listing:An initial public offer (IPO) in February 1993 with an offer price of ₹95 (equivalent to ₹480 or US$7.50 in 2016) per share against book value of ₹20 (equivalent to ₹100 or US$1.60 in 2016) per share. The Infosys IPO was under subscribed but it was "bailed out" by US investment bank Morgan Stanley which picked up 13% of equity at the offer price. Its shares were listed in stock exchanges in June 1993 with trading opening at ₹145 (equivalent to ₹740 or US$11 in 2016) per share.
Its shares were listed on NASDAQ in 1999 through ADR route. The share price surged to ₹8,100 (equivalent to ₹24,000 or US$380 in 2016) by 1999 making it the costliest share on the market at the time. At that time, Infosys was among the 20 biggest companies by market capitalization on the NASDAQ. The ADR listing was shifted from NASDAQ to NYSE Euronext to give its European investors better access to its stock.
Revenue growth: Its annual revenue touched US$100 million in 1999, US$1 billion in 2004 and US$10 billion in 2017.
Geographical expansion: In 2012, Infosys announced a new office in Milwaukee, Wisconsin to service Harley-Davidson, being the 18th international office in the United States. Infosys hired 1,200 United States employees in 2011, and expanded the workforce by an additional 2,000 employees in 2012.
Product and portfolio expansion: In July 2014, Infosys started a product subsidiary called, EdgeVerve Systems., focusing on enterprise software products for business operations, customer service, procurement and commerce network domains. In August 2015, the Finacle Global Banking Solutions assets were officially transferred from Infosys and became part of the product company EdgeVerve Systems product portfolio.
Products and services
It provides software development, maintenance and independent validation services to companies in america, finance, insurance, manufacturing and other domains.
One of its known products is Finacle which is a universal banking solution with various modules for retail & corporate banking.
Glass building in Pune
Its key products and services are:
- NIA - Next Generation Integrated AI Platform (formerly known as Mana)
- Infosys Consulting - a global management consulting service
- Infosys Information Platform (IIP)- Analytics platform
- EdgeVerve Systems which includes Finacle, a global banking platform
- Panaya Cloud Suite
Infosys had 84 sales and marketing offices and 116 development centers across the world as at March 31, 2017, with major presence in India, United States, China, Australia, Japan, Middle East and Europe.
In 2017, 61.9%, 22.5% and 3.2% of its revenues were derived from projects in North America, Europe and India, respectively. Remaining 12.4% of revenues were derived from rest of the world.
|Name of acquired company ||Based in ||Acquisition cost ||Acquisition date ||Business of acquired company |
|Expert Information Services ||Australia ||US$23 million ||Dec 2003 ||IT service provider |
|McCamish Systems ||USA ||US$38 million ||Dec 2009 ||Insurance and financial services |
|Portland Group ||Australia ||AUD 37 million ||Jan 2012 ||Strategic sourcing and category management |
|Lodestone Holding AG ||Switzerland ||US$345 million ||Sep 2012 ||Management consultancy |
|Panaya ||Israel ||US$200 million ||Mar 2015 ||Automation technology |
|Skava ||USA ||US$120 million ||Apr 2015 ||Digital experience solutions |
|Noah-Consulting ||USA ||US$70 million ||Nov 2015 ||Information management consulting services |
|Brilliant Basics ||UK ||GBP 7.5 million ||Aug 2017 ||Product design and customer experience |
In India, shares of Infosys are listed at BSE where it is included in BSE SENSEX and NSE where it is included in CNX NIFTY. Its shares are listed by way of American Depositary Receipts at NYSE.
Over a period of time, the shareholding of its promoters has gradually reduced, starting from June 1993 when its shares were first listed on stock exchange. The promoters holdings reduced further with Employees Stock Options Schemes and listing of ADRs on NASDAQ in 1999. The promoter holding on 31 March 2002 was 28.72% and at 30 Jun 2017 it dropped to 12.75% as they gradually sold their shares and reduced involvement in active management of the company.
Infosys had a total of 200,364 employees at the end of March 2017, of which 36% were women. Its workforce consists of employees representing 129 nationalities. In 2016, 89% of its employees were based in India. Out of its total workforce, 79% are software professionals, 16% are working in its BPO arm and remaining 5% work for support and sales.
During financial year 2017, Infosys received 1,293,877 applications from prospective employees and had a gross addition of 51,004 employees, a 4% hiring rate. These numbers do not include its subsidiaries.
The attrition rate of Infosys Ltd., excluding its subsidiaries, for financial year 2017, was 15%.
Training centre in Mysuru
The Development Center in Mysuru
As the world's largest corporate university, the Infosys global education centre in the 337 acre campus has 400 instructors and 200 classrooms, with international benchmarks at its core. Established in 2002, it had trained around 125,000 engineering graduates by June 2015. It can train 14,000 employees at a given point of time on various technologies.
The Infosys Leadership Institute (ILI), based in Mysuru, has 96 rooms and trains about 400 Infoscions annually. Its purpose is to prepare and develop the senior leaders in Infosys for current and future executive leadersip roles.
The Infosys Training Center in Mysuru also provides a number of extracurricular facilities like tennis, badminton, basketball, swimming pool and gym.
Since its establishment in 1981 till 2014, the CEOs of Infosys were its promoters, with N. R. Narayanmurthy leading the company in its initial 21 years. Dr Vishal Sikka was the first non-promoter CEO of Infosys who worked for around 3 years. Dr Vishal Sikka resigned in August 2017. In a personal note to board colleagues, Dr. Sikka cites a 'drumbeat of distractions' and "false, baseless, malicious and increasingly personal attacks" as his reason for leaving Infosys. Many sources suspect this is in reference to a long running feud with Infosys Founders over the new direction Sikka was reportedly taking Infosys. After his resignation, UB Pravin Rao was appointed as Interim CEO and MD of Infosys. Infosys has appointed Salil Parekh chief executive officer (CEO) and managing director (MD) of the company with effect from January 2, 2018, culminating the search of a CEO which began since the departure of Vishal Sikka in August due to a spat with the founders over various issues.
In 1996, Infosys established the Infosys Foundation, to support the underprivileged sections of society. At the outset, the Infosys Foundation implemented many programs in Karnataka. It subsequently covered Tamil Nadu, Telangana, Andhra Pradesh, Maharashtra, Odisha, and Punjab in a phased manner. A team at the foundation identifies all the programs in the areas of healthcare, education, culture, destitute care and rural development. The Infosys Foundation USA promotes science and math education in USA, with an emphasis on under-represented students.
Infosys' Global Academic Relations team forges Academic Entente (AcE) with academic and partner institutions. It explores co-creation opportunities between Infosys and academia through case studies, student trips and speaking engagements. They also collaborate on technology, emerging economies, globalization, and research. Some initiatives include research collaborations, publications, conferences and speaking sessions, campus visits and campus hiring.
Infosys Labs is organized as a global network of research labs and innovation hubs.
Infosys Labs collaborates with leading national and international universities such as the University of Southern California Viterbi School of Engineering, University of Cambridge, Queens University of Belfast, University of Illinois at Urbana-Champaign, Indian Institute of Technology Bombay, IITB-Monash Research Academy, Indraprastha Institute of Information Technology, Delhi, Indian Institute of Science, Bangalore, Purdue University, Indian Institute of Information Technology, Bangalore.
The Infosys Prize is an annual award given to scientists, researchers, engineers and social scientists connected to India. It is given by the Infosys Science Foundation, a non-profit trust which was set up in February 2009 by Infosys and some members of its Board. The prize is given under six categories. Each category includes a gold medallion, a citation certificate, and prize money of ₹6.5 million (US$100,000).
Awards and recognition
- In 2017, HfS Research included Infosys in Winner's Circle of HfS Blueprint for Managed Security Services, Industry 4.0 services and Utility Operations.
- In 2012, Infosys was ranked #19 amongst the world's most innovative companies by Forbes.
- In 2006, Institute of Chartered Accountants of India included Infosys into Hall of Fame for being the winner of Best Presented Accounts for 11 consecutive years.
Accusation of visa fraud
In 2011, Infosys was accused of committing visa fraud by using B-1 (visitor) visas for work requiring H-1B (work) visas. The allegations were initially made by an American employee of Infosys in an internal complaint. He subsequently sued the company, claiming that he was harassed and sidelined after speaking out. Although that case was dismissed, it along with another similar case, brought the allegations to the notice of the US authorities — and the U.S. Department of Homeland Security and a federal grand jury started investigating.
In October 2013, Infosys agreed to settle the civil suit with US authorities by paying US$34 million. Infosys refused to admit guilt and stressed that it only agreed to pay the fine to avoid the nuisance of 'prolonged litigation'. In its statement the company said "As reflected in the settlement, Infosys denies and disputes any claims of systemic visa fraud, misuse of visas for competitive advantage, or immigration abuse. Those claims are assertions that remain unproven".
Displacement of American workers at Southern California Edison and Disney
In 2015, the Department of Labor began an investigation of Infosys after claims were made that the company used workers with H-1B visas to replace workers at Disney and Southern California Edison. Florida Sen. Bill Nelson also asked the Department of Homeland Security to investigate reports of layoffs at Disney. The investigation did not find any wrongdoing.
- House of Fraser, a British-based department store opted for Infosys as strategic partner to transform its business channel, IT infrastructure and to expand its global footprint. This multiyear deal is signed in the presence of Mr. Yuan Yafei, Chairman, Sanpower Group and Dr. Vishal Sikka, then CEO, Infosys.
- Infosys signed a multiyear agreement with Deutsche Bank for supporting in development, application maintenance, digital and mobility, package implementation and testing services.
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