Case Analysis: INFOSYS Technologies Limited

Abstract

It is one of India's largest IT companies with 103,905 professionals as of Jun 30, 2009. It has offices in 22 countries and development centers in India, China, Australia, UK, Canada and Japan. was founded on July 2, 1981 in Pune by N. R. Narayana Murthy. N. S. Raghavan officially being the first employee of the company. Murthy started the company by borrowing INR 10,000 from his wife Sudha Murthy. The company was incorporated as Infosys Consultants Pvt Ltd., with Raghavan's house in Model Colony, north-central Pune as the registered office. In 1982, opened an office in Bangalore which soon became its headquarters. went public in 1993. Interestingly, IPO was undersubscribed but it was bailed out by US investment banker Morgan Stanley which picked up 13% of equity at the offer price of Rs. 95 per share. The share price surged to Rs. 8,100 by 1999 making it the costliest share on the market at the time. According to Forbes magazine, since listing on the Bombay Stock Exchange till the year 2000, Infosys' sales and earnings compounded at more than 70% a year. In 2001, it was rated Best Employer in India by Business Today. won the Global MAKE (Most Admired Knowledge Enterprises) award, for the years 2003, 2004 and 2005, being the only Indian company to win this award and is inducted into the Global Hall of Fame for the same. In April 2009, Forbes rated among the 5 best performing companies in the software and services sector in the world.