Infosys in 2013

Table of Contents

Question: After two years away from the role, Narayana Murthy returned to the board of directors at Infosys in 2013, Murthy founded the company in 1981. How did Infosys perform when he was away and what management issues does the company now need to address? 2

History of Infosys 3

Infosys's performance after N.R. Narayana Murthy 3

Management issues that Infosys now needs to address 5

Conclusion 6

References 7

Question: After two years away from the role, Narayana Murthy returned to the board of directors at Infosys in 2013, Murthy founded the company in 1981. How did Infosys perform when he was away and what management issues does the company now need to address?

Executive summary

"Building tomorrow's enterprise" is the slogan that Infosys goes by. Being a number one global leader in consulting, technology and outsourcing solutions Infosys with its offices in more than 30 countries around the world, helps their clients to be ahead of their competitors and manage their businesses better. Infosys offers three different categories of services, which are business services, technology services and outsourcing services. In the business services they offer services such as business applications, management consulting, oracle, and sustainability services. For technology they offer service such as application management, engineering services, enterprise mobility, infrastructure management, and testing services. In the outsourcing service department they offer services such as application outsourcing, infrastructure outsourcing, business process outsourcing, customer service, finance, accounting, human resources, and sourcing and procurement. Hiring more than 155, 000 employees worldwide and with revenue building up to 7.4 billion US dollars, Infosys help businesses and enterprises achieve strategic insight of what lies ahead of them in the business world and with the changing world that we live in now Infosys allows enterprises to move along with that change through strategic consulting, operational leadership and break through solutions. This report is going to look at some of the problems that Infosys faced, some of the management styles that made Infosys successful and those that the company has to address after its downfall. Helping us learn some of the management styles that were used and how it can help us and other managers in future.

History of Infosys

Established in the year 1981, Infosys is a global software consulting and IT services company founded by N.R Narayana Murthy, with their headquarters based in Bangalore, India. Starting with just $250 in capital, Infosys now has a market capitalization of $2.4 billion. Infosys has been in the industry for more than 30 years and throughout these years they have managed to achieve a lot making India one of the world's destination for software services. Infosys was one of the first IT companies in India to be listed on NASDAQ. It employs more than 155,000 employees worldwide. Throughout the years from 1981 Infosys had plan of expanding their operation and they have done so in countries such as the United Stated, Boston to be specific, Europe, UK, Toronto Canada, Belgium, Australia, Germany, Sweden, Argentina, Netherland, Singapore, Hong Kong, France and Switzerland etc. throughout the years they have managed to open new subsidiaries, launch progeon, re-launch banks and start enterprise solutions Infosys etc. They have also increased their revenue yearly. From the start Infosys aim was not on making money or making Infosys one of the biggest IT Companies in the world but to gain respect from their partners and stakeholders.

Infosys's performance after N.R. Narayana Murthy

After gaining so much success over the years since the start of Infosys, N.R. Narayana Murthy handed over his chairmanship to K.V. Kamath in the year 2011. Infosys was now under the leadership of K.V. Kamath as chairman and S.D Shibulal as CEO. Along the way something went wrong, almost as if the leaders didn't know what was expected of them by the stakeholders as the new leaders of Infosys. Kamath divided his time into two, when he started working for two completely different companies as chairman which was at both Infosys and ICICI the second largest bank in the country not recognizing that these two companies were two very different animals. Infosys shares had gone down 9.20% within the year. Because of its downfall, it became very hard for Infosys to become a target for acquisition in the market. With competitors such as HCL, Wipro, Cognizant technologies and TCS entering the market Infosys couldn't keep up with such companies and their financial results that they had in the market. Although Infosys had growth in numbers, their shares on both the Bombay and national stock exchange had started falling this being because the analyst expected much better numbers from Infosys which they would either miss by single digit percentage point or barely meet. Infosys compared to its competitors had very low-level software programmers rather than high-level software like their competitors. Some of Infosys overseas markets were becoming cold because when Infosys had the change to cultivate or grow its market there it did not make the time for that. Another problem that infosys was facing is the introduction of their new strategy which they call infosys 3.0 strategy. This strategy means that the company will now offer transformational projects that will allow them to transform into a business solution provider. Due to current market needs the company decided to focus on new solutions that included sustainability, enterprise mobility and Cloud computing. The Infosys 3.0 strategy had taken a toll on Infosys in a sense that they introduced it into the market at the wrong time when customers were more focused on cost. Infosys could only think about growth at that period and forgot that they had to target clients with smaller budget in