INFOSYS TECHNOLOGIES LIMITED
Narayan Murthy, the CEO and Chairman of INFOSYS was one of those persons in India who really thought about development of Indian society, its people, and to create value out of people’s money. He was the person who thought that-
* Society can create wealth by fostering its creation
* And there are relatively very few people who are capable of leading the creation of wealth on meaningful scale, and these good people need proper incentive
Founding INFOSYS and the journey
In 1981, “Narayan MURTHY” along with 6 other people founded started Infosys. The company had clear vision- to create wealth in legal and ethical manner. Initially the company faced many problems like—
* Raising funds
* No opportunities in domestic market
* Laws in India etc etc
* 1981- crisis- which almost left the firm to close down
But Murthy found out the way. And slowly company started to flourish. In 1991, it took opportunity and got listed on BSE.
He was very conservative in terms of borrowing. So the firm avoided debt as much as possible.
Financing mainly through profit retention, low capital expenditure and tight cost control it was successful to come out of crisis....
* It became very successful
* Attrition rate was very low(employees enjoyed working)
* Value addition for employees in terms of learning, financial help, and emotional support.
* It emerged as market leader
* Full disclosure and transparency
* Performing full audit according o GAAP
Growing pains: - with growth of the company and its success rate. The company still had pains:-
* It lacked productivity per year
* Wage differential in India and U.S
* Cultural concerns.
* Creating positive word of mouth( being an Indian company, building global image is very critical and important)
THIS could be done by creating the buzz in the market (domestic as well as international) and hiring the personnel accordingly