This action might not be possible to undo. Are you sure you want to continue?
Narayana Murthy [CHIEF MENTOR OF INFOSYS]
SUBMITTED BY:HITESH G LALWANI Roll No. 16 HAILEY R PATEL Roll No. 14 HIMANI J SHAH Roll No. 15 FY-BBA (ITM) [SEM-2] ACADEMIC YEAR: 2010 ± 2011 Date of Submission:13th April 2011 SUBMITTED TO:SARDAR PATEL UNIVERSITY VALLABH VIDYANAGAR
FACULTY ± IN ±CHARGE
SRNO PARTICULAR PAGE NO. 3-5
PERSONAL PROFILE:I. II. History and family Background Education
PROFESSIONAL BACKGROUND:I. II. III. IV. Work Experience How he became an Entrepreneur Individual Milestones Professional Achievements
GROWTH :I. II. Growth of Enterprise Growth of company
PROBLEM & CHALLENGES FACED
METHODS FOR SOLVING PROBLEMS & CHALLENGES
SOCIETAL OUTLOOK:I. II. Society Contribution Support for Society
1. PERSONAL PROFILE
I. History and family Background:-
Born on August 20, 1946, N.R. Narayana Murthy is a B.E. Electrical from University of Mysore (1967) and M.Tech from IIT Kanpur (1969). Narayan Murthy began his career with Patni Computer Systems in Pune. In 1981, Narayana Murthy founded Infosys with six other software professionals. In 1987, Infosys opened its first international office in U.S.A. Nagavara Ramarao Narayana Murthy better known as N. R. Narayana Murthy, is
an Indian businessman, software engineer and the founder of Infosys Technologies , a consulting and IT services company based in India. He is currently the non-executive Chairman and Chief Mentor of Infosys. He was the CEO of the company for 21 years, from 1981 to 2002. After stepping down as CEO in 2002, he has broadened his scope of activities to social services as well as promoting India globally. His estimated net worth is $1.6 billion as of 2010. In 2009, his lectures delivered around the world have been published as a book ³A Better India: A Better World´. One of the founders of Infosys Technologies Limited; Chosen as the World Entrepreneur of the Year 2003 by Ernst and Young Narayana Murthy is the Non-Executive Chairman and Chief Mentor of Infosys Technologies Limited. He is a living legend and an epitome of the fact that honesty, transparency, and moral integrity are not at variance with business acumen. He set new standards in corporate governance and morality when he stepped down as the Executive Chairman of Infosys at the age of 60. With the liberalization of Indian economy in 1990s, Infosys grew rapidly. In 1993, the company came up with its IPO. In 1995, Infosys set up development centers across cities in India and in 1996, it set up its first office in Europe in Milton Keynes, UK. In 1999, Infosys became the first Indian company to be listed on NASDAQ. Today (in 2006), Infosys has a turnover of more than $ 2billion and has employee strength of over 50,000. In 2002, Infosys was ranked No. 1 in the "Best Employers in India 2002" survey conducted by Hewitt and in the Business World's survey of "India's Most Respected Company." Conducted in the same year.
Along with the growth of Infosys, Narayana Moorthy too has grown in stature. He has received many honors and awards. In June 2000, Asiaweek magazine featured him in a list of Asia's 50 Most Powerful People. In 2001, Narayana Murthy was named by TIME/CNN as one of the 25 most influential global executives. He was the first recipient of the Indo-French Forum Medal (2003) and was voted the World Entrepreneur of the Year - 2003 by Ernst and Young. The Economist ranked Narayana Murthy eighth on the list of the 15 most admired global leaders (2005) and Narayan Murthy also topped the Economic Times Corporate Dossier list of India's most powerful CEOs for two consecutive years - 2004 and 2005.
His wife, Sudha Murthy née Kulkarni, is an Indian social worker and accomplished author. She is known for her philanthropic work through the Infosys Foundation. Her sister, Jayashree Despande is wife of enterpreneur and founder of US-based Sycamore Networks, Gururaj Deshpande. They have two children- Rohan and Akshata. Rohan is engaged to Venu Srinivasan's (of TVS motors) daughter Lakshmi Venu. Akshata Murthy is married to Rishi Sunak. Sudha Murthy helps him in setting up his VC Fund by giving him Rs.430 crores which she got by selling quarter of her stake 1.6% in Infosys. And Mr. Murthy is the brother-in-law of serial entrepreneur Gururaj "Desh" Deshpande and the uncle of former NASSCOM Chairman and MphasiS chief Jerry Rao.
N. R. NARAYANA MURTHY (Date of Birth : August 20, 1946, Education : B. E. Electrical '67, Univ. of Mysore; M. Tech. '69, Indian Institute of Technology, Kanpur, India) is the Chairman of the Board and Chief Mentor of Infosys Technologies Limited, a global Information Technology (IT) consulting and software services provider, headquartered at Bangalore, India. He founded Infosys in 1981 along with six other software professionals & served as the CEO of Infosys for twenty years before handing over the reins of the company to co-founder, Mr. Nandan M. Nilekani, in March 2002. He served as the Executive Chairman of the Board and Chief Mentor from 2002 to 2006. Under his leadership Infosys was listed on NASDAQ in 1999. Mr. Murthy is the chairman of the governing body of the Indian Institute of Information Technology, Bangalore. He is a member of the Board of Overseers of the University of Pennsylvania's Wharton School, Cornell University Board of Trustees, Singapore Management University Board of Trustees, INSEAD's Board of Directors, Asian Institute of Management's Board of Governors and the Executive Board of Indian School of Business. He is also a member of the Advisory Boards and Councils of various well-known universities - such as the Stanford Graduate School of Business, the Corporate Governance initiative at the Harvard Business School, the Yale University and the University of Tokyo¶s President's Council. Mr. Murthy has led key corporate governance initiatives in India. He was the Chairman of the committee on Corporate Governance appointed by the Securities and Exchange Board of India (SEBI) in 2003. Mr. Murthy serves as an independent director on the board of the DBS Bank, Singapore, the largest Government-owned bank in Singapore and on the boards of Unilever, NV and Unilever, plc. He is a member of the Asia Pacific Advisory Board of British Telecommunications plc., and a member of the Board of New Delhi Television Ltd. (NDTV), India. He serves as a member of the Prime Minister's Council on Trade and Industry, and as a member of the Board of Directors of the United Nations Foundation. He is an IT advisor to several Asian countries. He is also a member of the Board of Trustees of TiE Inc. (Global), a worldwide network of entrepreneurs and professionals dedicated to fostering entrepreneurship and Chairman of the Asia Business Council, a consortium of CEO-level leaders with operations in Asia.
2. PROFESSIONAL BACKGROUND
I. Work Experience :-
His first position was at IIM Ahmadabad as chief systems programmer where he worked on a timesharing system and designed and implemented a BASIC interpreter for ECIL (Electronics Corporation of India Limited).
After IIM Ahmadabad, he then joined Patni Computer Systems in Pune. Before moving to Mumbai, Murthy met his wife Sudha Murthy in Pune who at the time was an engineer working at Tata Engineering and Locomotive Co. Ltd. (Telco, now known as Tata Motors) in Pune. In 1981, with an investment of Rs.10, 000 ($250 at the time) from his wife, he founded Infosys with six other software professionals. He served as the president of the National Association of Software and Service Companies, India from 1992 to 1994.
How he became an Entrepreneur:-
Infosys was Narayana Murthy second attempt to become entrepreneur. Before starting Infosys, he tried to establish one another company called Softronics, whose main target was domestic market. But that venture failed and finally Murthy started looking into other options and then Infosys came into picture. On July 2,1981, seven engineers working for Patni Computers, decided to start their own company. Thus Infosys Technologies was born. There were six South Indians including Nandan and Murthy and one Punjabi, Ashok Arora. Nandan Nilkeni always says that Infosys represents the revolt of South Indian Brahmins against the north Indian banias (Businessmen) who dominated Indian business at the time. Due to his technical skills and knowledge in the field of computer science, Narayana Murthy is often considered as the best software engineer ever produced by India. He is M.Tech in Computer Science from IIT Kanpur (1969 batch).
Sharad Hegde was Infosys' first non-founder employee. Before joining Infosys he was working in Patni, Hegde was Infosys' tech-guru in its early years. He left the company only in the early 2000s Most people in Infosys saw Phaneesh as Murthy's successor in the late 1990s and the early 2000s. Actually he played major role in growing the company from a $10 million one to a $700 million one between 1992 and 2002. Then, the sexual harassment suit (circa 2002, when a former Infosys employee in the US, Reka Maximovitch, alleged that she had been harassed by Phaneesh) happened, and Phaneesh had to leave the company. Now a days, he is CEO of iGate. He is an IIMA graduate. The first minicomputer arrived at Infosys in 1983. It was a Data General 32-bit MV8000. The very next year Infosys switched from mini to main frames with a CAMP application for a Data Basics customer. Infosys got its first joint venture partners in Kurt Salmon Associates. Gopalakrishnan played the main role in this joint venture. But it got collapsed in 1989 and Infosys came into almost dying stage. Gopalakrishnan then told Murthy that they had nothing after eight years of trying to bring up a company. Those who studied with us had cars and houses. The company was on the verge of collapse. One of the founders of Infosys, Ashok Arora decided to quit. The other founders did not know what to do. But Murthy had the courage of conviction. 'If you all want to leave, you can. But I am going to stick (with it) and make it,' Murthy told them. This was actually courage and firm determination of Murthy, which finally saved the company.
He served as the president of the National Association of Software and Service Companies, India from 1992 to 1994.Murthy has been the recipient of numerous awards and honors. In 2008, he was awarded the Padma Vibhushan, a second highest civilian award by India and Légion d'honneur, the highest civilan award awarded by France. In 2000, he was awarded the Padma Shri, a civilian award by the Government of India.
He was voted the World Entrepreneur of the Year - 2003 by Ernst & Young. He was one of the two people named as Asia's Businessmen of the Year for 2003 by Fortune magazine. In 2001, he was named by TIME / CNN as one of the twentyfive, most influential global executives, a group selected for their lasting influence in creating new industries and reshaping markets. He was awarded the Max Schmidheiny Liberty 2001 prize (Switzerland), in recognition of his promotion of individual responsibility and liberty. In 1999,BusinessWeek named him one of the nine entrepreneurs of the year and he was also featured in the Business Week¶s 'The Stars of Asia' (for three successive years - 1998, 1999 and 2000). In 1998, the Indian Institute of Technology, Kanpur, one of the premier institutes of higher learning in India, conferred on him the Distinguished Alumnus Award, and in 1996-97, he was awarded the JRD Tata Corporate Leadership Award. He was awarded the Dean's medal by the Wharton School in 2001.
In December 2005, Narayana Murthy was voted as the 7th most admired CEO/Chairman in the world in a global study conducted by Burson-Marsteller with the Economist Intelligence Unit. The list included 14 others with distinguished names such as Bill Gates, Steve Jobsand Warren Buffett. In May 2006, Narayana Murthy has, for the fifth year running, emerged the most admired business leader of India in a study conducted by Brand-comm, a leading Brand Consulting, Advertising and PR firm.
The Economist ranked him 8th among the top 15 most admired global leaders (2005). He was ranked 28th among the world's mostrespected business leaders by the Financial Times (2005). He topped the Economic Times Corporate Dossier list of India's most powerful CEOs for two consecutive years ± 2004 and 2005.
TIME magazine¶s ³Global Tech Influential¶s´ list (August 2004) named Murthy as one of the ten leaders who are helping shape the future of technology. In November 2006, TIME magazine again voted him as one of the Asian heroes who have brought about revolutionary changes in Asia in the last 60 years. The list featured people who have had a significant impact on Asian history over the past 60 years and it included others such as Mahatma Gandhi, Dalai Lama, Mother Teresa, Muhammad Ali Jinnah etc. He was the first recipient of the Indo-French Forum Medal (2003), awarded by the IndoFrench Forum in recognition of his role in promoting Indo-French ties. He was recently awarded the Commander of the British Order (CBE) by the British government. He was awarded the IEEE Ernst Weber Engineering Leadership Recognition in 2007, and he received the IEEE Honorary Membership in 2010.. Also in 2010, in what is considered to the be the highest professional distinction for an engineer, the American National Academy of Engineers (NAE) elected Murthy as a foreign member. Murthy also holds over 26 honorary doctorates from universities across the world.
Murthy served as the founder CEO of Infosys for 21 years, and was succeeded by co-founder Nandan Nilekani in March 2002. At Infosys he articulated, designed and implemented the Global Delivery Model which has become the foundation for the huge success in IT services outsourcing from India. He serves on the boards of various companies and universities across the world. Murthy serves as an independent director on the board of the DBS Bank of Singapore. This is the largest government-owned bank in Singapore. He also serves as a director on the Central Board of the Reserve Bank of India, as the co-chairman of the place, and as a member of the Board of NDTV, India. He also serves as an independent director on the board of the European FMCG giant Unilever. He is an IT advisor to several Asian countries. He is also an Independent Director on the board of HSBC. He also serves on the boards of the Ford Foundation and UN Foundation. Indo-British Partnership, as a member of the Prime Minister's council on trade and industry, as a member of the Asia Advisory Board of British Telecommunications He is the chairman of the governing body of the International Institute of Information Technology - Bangalore, and was the Chairman of the Governing Body of the Indian. In addition, he is a member of the Board of Directors of INSEAD, Board of Overseers of the Wharton School of the University of Pennsylvania, Board of Trustees, Business Advisory Council of Great Lakes Institute of Management Chennai, Singapore Management University Board of Trustees and the Board of Advisors for the William F. Achtmeyer Center for Global Leadership at the Tuck School of Business. Mr. Murthy also sits on the Board of Governors of the Asian Institute of Management (AIM), a graduate school of business located in the Philippines and is also the Chairman of the Board of Members of School of Management , Asian Institute of Technology (AIT) located in Bangkok, Thailand. He is the chairman of the, Asia Business Council, an organization headquartered in Hong Kong. He is also a member of the Advisory Boards and Councils of various well-known universities ± such as the Stanford Graduate School of Business, the Corporate Governance initiative at the Harvard Business School, Cornell committee on academic affairs and committee on alumni affairs and development, Yale University and the University of Tokyo¶s President's Council. Murthy retired from his executive position at Infosys on 20 August 2006. However, he continues as the Non-Executive Chairman of the board. Murthy started a new venture capital fund called Catamaran Venture Fund with the money he got by selling 800,000 Infosys shares worth 174 Crores. Sudha Murthy does it again by helping him in setting up his VC Fund by giving him Rs.430 crores which she got by selling quarter of her stake 1.6% in Infosys.
Mr. Murthy is a member of the National Information Technology Task Force of India, and also of the Prime Minister's Council on Trade and Industry. He is a Director on the board of the Reserve Bank of India (RBI) TURNING POINTS OF MURTHY The idea of Infosys was born on a morning in January 1981. That fateful day, N R Narayana Murthy and six software engineers sat in his apartment debating how they could create a company to write software codes. Finally, it was Murthy turn. He spoke about our journey from a small Mumbai apartment in 1981 that had been beset with many challenges, but also of how he believed they were at the darkest hour before the dawn. He then took an audacious step. If they were all bent upon selling the company, Murthy said, ³I would buy out all my colleagues, though I did not have a cent in my pocket.´ There was a stunned silence in the room. Murthy colleagues wondered aloud about his foolhardiness. But he remained silent. However, after an hour of his arguments, his colleagues changed their minds to Murthy¶s way of thinking. He urged them that if they wanted to create a great company, they should be
optimistic and confident. They have more than lived up to their promise of that day. Six months later, Infosys was registered as a private limited company on July 2, 1981. Infosys cofounder N S Raghavan's house in Matunga, northcentral Mumbai, was its registered office. It was then known as Infosys Consultants Pvt Ltd. Murthy's six friends who joined hands to launch Infosys were Nandan Nilekani, N S Raghavan, S Gopalakrishnan, S D Shibulal, K Dinesh and Ashok Arora. The company's starting capital was US $250 - Murthy borrowed $250 from his wife Sudha to start the company. The front room of Murthy's home was Infosys' first office, although the registered office was Raghavan's home. Those days, Murthy wanted to do something with his life, but he had no money. Murthy was married to Sudha on February 10, 1978, while he was working with wife & computers. In 1981, it was Murthy's idea to start Infosys. Murthy had a dream, and no money. So Sudha gave him Rs 10,000, which she had saved without his knowledge. Murthy and his six colleagues started Infosys in 1981. In 1983, Infosys moved to Bangalore when it got its first client, Data Basics Corporation from the United States. Subsequently, they created a Risk Mitigation Council which ensured that we would never again depend too much on any one client, technology, country, application area or key employee. The crisis was a blessing in disguise. Today, Infosys has a sound de-risking strategy that has stabilised its revenues and profits. First of all, with INFOSYS revenues of only around $5 million, they were minnows compared to the customer. Secondly, INFOSYS customer contributed fully 25% of our revenues. The loss of this business would potentially devastate their recently-listed company. Third, the customer's negotiation style was very aggressive. The customer team would go from room to room, get the best terms out of each vendor and then pit one vendor against the other. This went on for several rounds. Our various arguments why a fair price one that allowed us to invest in good people, R&D, infrastructure, technology and training was actually in their interest failed to cut any ice with the customer. But at last Narayan Murthy promised a smooth, professional transition to a vendor of customer's choice.
I. Growth of Enterprise:-
He was born into a Kannada Madhwa Brahmin family in Mysore, India on August 20, 1946. Mr. Narayana Murthy is undoubtedly one of the most famous persons from Karnataka. He is known not just for building the biggest IT Empire in India but also for his simplicity. Almost every important dignitary visits Infosys campus. The beauty about his family is that they believe in sharing their wealth with the needy. We wish the leading film actors in Karnataka had followed his footsteps. Narayana Murthy feels that we need to review our reservation policy. He expressed this on Aug 11, 2001 during the convocation address at IIT, Delhi. He says perhaps we are the only nation in the world were people fight to be called backward rather than forward. Mr Jerry Rao,Former Chairman & CEO Mphasis, welcomed Mr Narayana Murthy, Chief Mentor of Infosys; and spoke about the greatness of the man, the brilliance of the professional and the empathy of a socialist. He also shared interesting anecdotes on his long association with Mr Murthy and how over the years Infosys, the great organization that it is, has become synonymous with the individual. Mr. Murthy welcomed the participants and thanked NASSCOM for creating such a platform where it was always marked in his annual calendar. Both he and his wife really looked forward to coming to Mumbai with great eagerness every year for the NASSCOM India Leadership Forum. He started on a lighter vein and expressed his fondness for Som Mittal and how in the ³mutual admiration club´, Som was the smartest. Mr Murthy briefly traced back the glorious history of NASSCOM and acknowledged the distinct value additions made by some of the illustrious presidents in the past, namely Anil Srivastava, Devang Mehta, Kiran Karnik and now the iconic chief, Som Mittal. He also shared some of his memorable experiences as the Vice President and as President of the apex body between the years 1990 ± 94.
Growth of company:-
For fiscal 1998 ending March 31, Infosys Technologies reported net revenue of $68.33 million, a 73 percent increase over fiscal 1997. The company's growth was fueled by its offshore software development model and the branding of some of its services. Infosys Technologies offered its clients an offshore model, whereby the company would replicate the systems and infrastructure of its international clients in India. During fiscal 1998 the firm's market capitalization rose to about $770 million from $192 million at the end of 1997. Four marketing offices were opened during fiscal 1998, including two in the United States and one each in Canada and Japan. The company had a total of 12 marketing offices, eight in the United States and four in other countries. During the year, the company gained 40 new clients. More than 70 percent of the company's revenue came from repeat business. Initiatives launched during the year included offerings for engineering services, Internet and intranet solutions, and Enterprise Package Solutions. The company was also addressing Euro conversion issues. Technical staff increased during the year to 2,186 from 1,396 at the end of fiscal 1997. Total employees increased to 2,622 from 1,701. The company expanded the decentralized development of software by commissioning the Infosys Towers facility at J.P. Nagar, Bangalore, during fiscal 1998. The development centers at Pune, Bhubaneswar, and Chennai were also expanded. The company also began construction on Infosys Park at Electronics City, Bangalore, to be completed by December 1999. It was during fiscal 1998 that Infosys Technologies become one of some 20 companies in the world to reach Level 4 of the Capability Maturity Model (CMM) of the Software Engineering Institute (SEI) at Carnegie Mellon University. The certification covered fixed-price software development, maintenance, and re-engineering processes, which together contributed about 90 percent of the company's revenue. Obtaining the certification reflected the firm's commitment to meeting international quality standards. In October 1998 Infosys Technologies held its third annual customer conference. The company used the conference to disseminate its best practices across its client base and to enhance the power of its global delivery model. Nearly 60 client representatives participated in this year's conference. The company stressed long-term relationships with its clients. In 1999 repeat business accounted for 90 percent of revenue, up from 83 percent in 1998.
The company's principal source of revenue, on a geographic basis, was North America, which accounted for 82 percent of revenue in both 1998 and 1999. Europe accounted for eight percent in both years, and India, approximately three percent. The rest of the world accounted for the remainder. During 1999 the company opened an office in Seattle and shifted a European office from Maastricht in the Netherlands to Frankfurt, Germany, giving it 13 marketing offices outside India, including nine in the United States. That same year Infosys Technologies expanded the range of its services and was becoming a full service partner to its clients. Projects the company worked on included ERP projects, a loyalty management package utilizing Microsoft technologies, and a system and security architecture consulting study. Its Internet consulting and development group designed and built high-performance and secure infrastructure for electronic commerce. During fiscal 1999 Infosys Technologies added 39 new clients, including The Boeing Company, Paradyne Corporation, and AMP Inc. Infosys Technologies was listed on the NASDAQ stock exchange on March 11, 1999. It was the first India registered company to become listed on an American stock exchange. Listing on the NASDAQ enabled Infosys Technologies to institute an employee stock option plan through the use of American Depository Receipts (ADRs), each of which was worth half a share. By mid-2000 the company had issued 4.16 million ADRs. Moreover, listing on the NASDAQ was expected to help the company raise money to finance its drive to become a global company, grow through acquisitions, and enhance its image. It would help the company attract a high-quality workforce by offering employee stock options. Infosys Technologies had been hiring 800 to 900 new employees per year. The IPO raised $70 million, and in the months following the IPO the company's stock price rose 20 percent. According to Business Week, the company gained $1 billion in market capitalization on its first day on the NASDAQ. By the end of 1999 the stock was trading at $290 per share, a 15-fold increase over the IPO price. At the beginning of 1999, most of the company's growth was expected to come from developing customized software. The company was also getting into Internet and intranet applications, enterprise resource planning (ERP) software, electronic commerce, and Euro conversion software. During fiscal 1999 the company attained SEI CMM Level 5, the highest level assessed by the SEI for quality. It continued to build up its infrastructure by completing its new facility, Infosys Park, at Electronics City, Bangalore, which could accommodate up to 2,000 software and support personnel. At the beginning of 1999 it began construction of a new software development facility at Pune Infotech Park, Hinjawadi, Pune. The first phase of this facility would have capacity for 1,200 professionals. The company also opened offices in Germany, Sweden, Belgium, and Australia. In mid-1999 an integrated extranet developed by Infosys Technologies for longtime outsourcing partner Nordstrom Inc. went online. It used a Windows NT software application that enabled the Nordstrom
Product Group to combine 20 spreadsheet applications into an integrated applications environment of databases linked over the Internet. Other repeat business came from the firm's Y2K work. For example, Infosys Technologies had performed Y2K compliance work for insurer Aetna Inc. during 1999, using about 50 software programmers and engineers. At the beginning of 2000 Aetna contracted for an additional 300 Infosys employees to develop its electronic commerce initiatives in the areas of global healthcare and financial services. Using the Infosys offshore model, Aetna worked with the firm's U.S. office, which in turn conveyed information to programmers in India. Infosys's Global Delivery Model enabled it to develop software collaboratively in different geographic locations. For example, a project's requirements might be outlined in the client's New York offices, with software development done in Bangalore, and deployment anywhere in the world. The time differences associated with different parts of the world enabled Infosys Technologies to provide 24-hour productive days and problem-solving. As of February 2000 the company had a market capitalization of more than $20 billion. For fiscal 2000 ending March 31, Infosys Technologies reported revenue of $203.44 million, compared to $120.96 million in 1999, an increase of 68 percent. Net income rose from $17.45 million in fiscal 1999 to $61.34 million in fiscal 2000. A statement from CEO N.R. Narayana Murthy noted, 'Demand for e-commerce services, an area where the company has a proven track record, continues to drive our revenue growth.' During fiscal 2000 Infosys Technologies made its first strategic investment in a leading-edge technology company, committing $3 million to Massachusetts-based EC Cubed, Inc., an application provider for business-to-business electronic commerce. The company reported a net profit of $28.4 million in the first quarter ending June 30, 2000, compared to $13.6 million for the same period in 1999. Overall revenue rose to $83 million, compared to $48.2 million in 1999. These results exceeded analysts' expectations. One analyst predicted the company's profits would double in the next two quarters, due to surging exports, higher priced services, and a larger proportion of high-margin e-commerce work. For the quarter ending June 30, 2000, Infosys said that e-commerce work made up nearly 29 percent of its total revenues, or $22.6 million, compared to nearly 19 percent in the quarter ending March 31, 2000, and 6.4 percent in the same quarter in 1999. During the first quarter of fiscal 2001 Infosys Technologies increased its workforce by nearly 20 percent to 6,446 employees. The company was expected to grow to more than 7,500 employees by the end of fiscal 2001 (March 31, 2001). In issuing a 'buy' rating, Merrill Lynch noted that many of Infosys Technologies' customers had asked the firm to increase its 'team size' by 80 to 100 percent over the next year.
4. PROBLEM & CHALLENGES FACED
Software icon N R Narayana Murthy has blamed poor public governance for major ills faced by the country such as illiteracy, malnourishment, lack of sanitation facilities and dismal food and power management. Even 63 years after Independence, 35 crore (350 million) Indians can't read and write. Twenty-five crore (250 million) people do not have access to safe drinking water, while 75 crore (750 million) have no access to sanitation facilities, Murthy said. "The country has the largest mass of malnourished children, and 35 per cent of (total production of) grains are allowed to rot", the chief mentor of Infosys Technologies Ltd said. He ( Mr.Murthy ) said India has an installed electricity generation capacity of 145 gigawatts but only 84 gigawatts are available, which is "sadly a shame".When they began moving ahead with Infosys, the founders Murthy, Nilekani, Shibulal and the others took a firm decision that their wives would not be involved in the running of the company. So after Murthy, it was Nilekani and his wife Rohini who moved to Bangalore. But they had no house to stay. So the Nilekanis stayed with the Murthys at their Jayanagar home in Bangalore. Rohini took care of Murthy's son as Sudha helped write software programmes for Infosys. There was no luxury, only struggle, day and night. They had no car, no phone. Murthy later recalled that it was not the luxuries of life, but the passion to create something new and innovative that made them keeps going on and on and on. The crisis, and how Infosys began to grow. The first years of Infosys were not smooth. Most of the founders Murthy, Nilekani, Dinesh, Shibulal and Gopalkrishnan were into writing codes. And they wanted to make an impact in the American market. So Infosys got its first joint venture partners in Kurt Salmon Associates. Gopalakrishnan, who had spent time working in the United States, was the public face of the KSA-Infosys venture in America. But the joint venture collapsed in 1989, leaving Infosys in the lurch. The collapse of the KSA joint venture led Infosys to its first crisis. The company was on the verge of collapse. But Murthy had the courage of conviction. Mr.Murthy said 1 line at that time ³If you all want to leave, you can. But I am going to stick (with it) and make it,´ Murthy told them. The other partners Nilekani, Gopalakrishnan, Shibulal, Dinesh and Raghavan -- decided to stay. Today, Infosys provides consulting and IT services to clients globally. It uses a low-risk, global delivery model to accelerate schedules with a high degree of time and cost predictability. The company has over 53,000 employees worldwide.
5. METHODS FOR SOLVING PROBLEMS & CHALLENGES
First of all, they need good leadership. Great leaders raise the aspirations of their followers; they make people more confident, energetic and enthusiastic. Such leaders make people embrace the adage: a plausible impossibility is better than a convincing possibility. People, who are motivated by great leaders, dream big, make sacrifices and achieve miracles. It is not sufficient just to have great leaders. INFOSYS has a mechanism to identify, train, empower and mentor successive generations of leaders. Such leadership training and mentoring has to become the responsibility of the current generation of leaders. Second, INFOSYS are creating a grand, noble vision which elevates the energy, enthusiasm and self-esteem of everyone in the company while ensuring that everybody sees a benefit in following the vision. Third, an INFOSYS has to benchmark itself on a global scale in every area including sales, production, human resources, R&D and finance. They try to create an open and confident environment where first-raters recruit first-raters. Fourth, INFOSYS is doing continuously measures and improves the following attributes: Meritocracy, fairness, justice, openness, speed, imagination and excellence in execution. Finally, INFOSYS is an best practices & to solve their problem by identifying themselves in an enduring value system, and follows the finest system of corporate governance.
6. SOCIETAL OUTLOOK
Society Contribution :-
Infosys has contributed Rs 50 million to the Prime Minister's Fund. In addition, Infosys requested employees to contribute a day's salary on a voluntary basis, their did something similar after 9/11. INFOSYS were the first Indian company and one of the few in the world outside the United States to contribute to the Firemen's Fund.
The Infosys Foundation has donated clothing, medicine and food items to the victims of the tsunami. Some of our people have gone to affected areas and helped people to improve processes for better management of aid distribution. Mr Murthy remembers India's environment in the early 1980s as "extremely business-unfriendly". Slow bureaucracy and long-winded procedures meant just getting the basic technology required to run a company. He recalls waiting a year to get a telephone connection and three years for a licence to import a computer. He launched Infosys in 1981 with six other colleagues on a mere $250 dollars borrowed from his wife. This tiny sum only kept the company going for a short time, but Mr Murthy says there was one simple way to remain profitable from the start: "you spent less than what you earned, that's all". Mr Murthy's tirelessness paid off. Today, Infosys has grown from a company of seven workers to a global corporation employing more than 125,000 people, with revenues of billions of dollars. "We stuck with it, and God has been kind to us," he says.
SUPPORT FOR SOCIETY:-
Public-private partnerships in developing countries like India are very important because a company cannot prosper on a sustainable basis, unless it makes a difference to the context in which it operates. By making a difference to the society in which they operate, companies create goodwill in the society, and become friends of the society. This responsibility is even greater in the case of multinationals, since there is a mistaken belief that multinationals do not care for the context, and are there only to plunder the society where they operate.
When the vast majority of the poor believe that there is a positive impact on them because of a publicprivate partnership involving multinationals, it is likely to create tremendous goodwill towards these companies.
SRNO. 1 2 3 4 5
WEBSET http://en.wikipedia.org/wiki/N._R._Narayana_Murthy http://www.karnataka.com/personalities/narayana-murthy http://www.iloveindia.com/indian-heroes/narayana-murthy.html http://www.infosys.com/pages/index.aspx http://www.google.co.in/images?hl=en&biw=1024&bih=674&q=i nfosys&um=1
DATA 25/03/20111 26/03/2011 27/03/2011 09/04/2011 09/04/2011
www.gsb.stanford.edu/cgbe/documents/Mr.Murthyprofile. http://www.infosysblogs.com/oracle/2009/10/enterprise_perform ance_managem.html
Narayana Murthy¶ said ³My father ... was a great fan of Western classical music. On Sundays, he used to play music for an hour. One day I asked him: why should I listen to this alien music? He said: What appeals to me is that in a symphony there are over 100 people, each of whom is a maestro, but they come together as a team to play according to a script under this conductor and produce something divine. They prove that one plus one can be more than two. It¶s a great example of teamwork.´
After analyzing Narayana Murthy¶s personality, values and attitude I came to know that a person can became successful only if he has good personality, value and attitude. Narayana Murthy is a person who took risk, did hard work, being patient for results, and cooperative; these qualities of his personality made him successful.
This action might not be possible to undo. Are you sure you want to continue?