Management of

Human Assets at
Infosys
Infosys
 Infosys is one of India’s leading information technology (IT) services
companies. It uses an extensive non-U.S. based (“offshore”)
infrastructure to provide managed software solutions to clients
worldwide.
 Founded in 1981.
 Corporate headquarters : Bangalore, India.
US headquarters : Fremont, CA .
 Sales offices located in the U.S., Canada, the U.K., Belgium, Sweden,
Germany, Australia, Japan and India.
 In 1999 Infosys was the first India-registered company listed on
NASDAQ
 In 2000 Infosys was voted India’s most admired company in The
Economic Times.
 over 58,000 employees worldwide.
Products

Infosys services include:

 software development,
 maintenance and re-engineering services,
 e-commerce and internet consulting,
 Dedicated Offshore Software Development Centres.
What do you think of the way human assets
are valued at Infosys?
TRAINING AND DEVELOPMENT

 The education and research center

 Classrooms, labs, individual faculty rooms
and library
 Related courses
 Fresh training
 Scheduled courses
 Various assessing mechanisms
MANAGERIAL EXPERTISE
 First time manager program
 The manager of managers program
 Infosys leadership program
COMPENSATION
 A greater total compensation
 One of the first Indian companies to offer
stock option plans to their employees
 Other benefits such as pension, medical
and leave
What are the problems?
 What about the students who didn’t done well
academically? They are likely to be rejected at the
first step. What about students majoring in other
subjects?
 Rejected candidates may reapply after 9 months. Is
it a little bit too long? And what if they are rejected
again?
 Although the compensation in Infosys is good in
India. It is not necessarily enticing, globally speaking.
 The fresh technology entrants receive 14.5 weeks of
training. So they have to be off work for more than 3
months.
How the Infosys can do better?
 To absorb more fresh-outs, considering
not their academic performance
 To condense the time of recruitment and
training
 To give more benefits to keep the people
 Will the company be successful in
attracting a similar profile of employees
(talented and commited) overseas ?
Infosys really tries to attract a similar
profile of employees overseas

 Why?

 Methods to succeed
- recruitment
- training
- compensation
However, culture doesn’t enable to find the
exact same profiles
 Culture might be a limit:

- language barrier
- differences about objectives and about ideas of
work
- about the devotion
- Low brand equity
- Emotional buy-in
  Culture might be an asset

In India In USA and Canada

abilities are more generalists possess specialize abilities

stronger in technical skills interpersonal skills and

communication abilities

- with the both skills might be very advantageous

- confrontation of culture gives incontestably

creativity and favours innovations.
Conclusion :

 Infosys tries to find and maintain foreign employees

who have the same profile than people hire in India.
 However, their culture differs.

 Differences should enrich the firm so Infosys.

 All the more so Infosys could be met, in the future,

with difficulties and risks.
How might the company culture/philosophy
be a hindrance/facilitator for overseas
operations?
FACILITATORS
 Infosys’ management style, which is rare among
Indian business leaders, is based on western
management
 Company’s strengths are youth, speed, and
imagination, and constant innovation in all
business areas
 Emphasis on transparency and communication
 Emphasis on getting the employees’ emotional
buy-in into the company
 Very rapid career development progress
HINDRANCES
 Overseas maintains the same
compensation strategy as in India
Infosys is not industry leader in pay
• The employment relationship in Indian
business is different to compared to the
Western context
INFOSYS
today
Revenue by geographical segment
LTM* LTM
Jun 30, 2006 Jun 30, 2000
% %

North America 64,8 78,0

Europe 25,1 14,8

India 1,5 1,4

Rest of the world 8,6 5,8

Total 100,0 100,0

*LTM – Last Twelve Months

 North America – U.S., Canada and
Mexico.
 Europe – continental Europe (both
the East and West), Ireland and the
U.K.
 Rest of the world – all other
places, except those mentioned
above and India.
 Human resources practices have
been successfully assessed at
LEVEL 5 of the People Capability
Maturity Model (PCMM).

 TheWorld’s most innovative

companies (2006, April 24) :
INFOSYS – 32 place.
Lev & Schwartz model
(to compute the value of HUMAN RESOURCES)
2006 2000

Employees Value of Employees Value of

(No.) human (No.) human
resources resources

Software 49,495 43,336 4,292 1,965

delivery

Support 3,220 3,301 1,097 0,272

TOTAL 52,715 46,637 5,389 2,237