Infosys Technologies

Submitted By:
Yeshwin Nandan,
Deep Samanta,
Sushma N
Introduction & History

 Narayana Murthy along with 5 other IT

professionals started Infosys in the year1981 with
a capital of US$250

 Infosys is a global leader in consulting,

technology, outsourcing and next-generation
services

 It is the second largest Indian provider of IT

Services
Global Presence
 India  Canada  Switzerland
 USA  Netherlands  China
 Germany  Belgium  UAE
 UK  France  Italy
 Japan  Sweden  Australia
 Netherlands
 Belgium
 France
Introduction & History
 From 1994 to 2004 the company experienced 10
years of unprecedented growth from $9.5 million
to $1,063 million.

 Based on its share price on NASDAQ (Infy),

Present Market Capital at US$10.9 billion as of
March 31, 2004

 Infosys and its subsidiaries have 25,634

employees as of 2004
Service Offerings
Values - CLIFE
 Customer Delight: A commitment to surpassing our
customers expectations
 Leadership by Example: A commitment to set
standards in our business and transactions and be
an exemplar for the industry and our own teams
 Integrity and Transparency: Commitment to be
ethical, sincere and open in out dealings
 Fairness: Commitment to be objective and
transaction oriented, thereby earning trust and
respect
 Pursuit of Excellence: A commitment to strive
relentlessly, to constantly improve our self, our teams,
out services and out products so as to become the
best
 Problems in Case of Infosys
 Value system:- For Infosys, business ethics and value system was a
very important entity/Pillar
 Social Pressure (Bribing): Being resistant to social evil like corruption has been
one of the most detrimental factors to the growth of Infosys in its initial stage of
foundation.
 Setting up modern office in Bangalore has been challenging for Infosys due to their
refusal to pay any bribe.

 Infosys had to pay higher excess duty to import its first computer to Bangalore.

 Economic liberalization : India’s economic liberalization in 1991 permitted 100%

foreign ownership in high-tech companies causing Microsoft, Sun, Oracle,
Citibank, IBM and General Electric to open up offices in India.
 Responding to Globalization: In the era of development of IT-enabled business
process outsourcing (BPO), India was challenged by countries such as China,
Czech Republic, Hungary and Romania, where transaction based processing
could be performed at a cheaper rate as the tasks did not typically involve
specialty programming knowledge.
 Problems in Case of Infosys
 Employee Motivation: It could be defined as the processes that account for an
individual’s intensity, direction and persistence of effort towards attaining a
goal – specifically, an organizational goal.
 Compensation and Retention: As of 2004, Infosys had an attrition rate of 10.5 percent
(up from 6.9 percent in 2003) with the average age of employees being 26 years and
promotion time being 2 years for good performers. Compensation became a hot
topic amongst Infosys employees.
 Organizational Commitment: Organizational commitment have directly related with
job satisfaction which influence the competitive position and profitability of an
organization. In today’s world where people have multiple career choices to choose
from it has become increasingly difficult for the employers to retain their employees.
The contemporary demographic, technological and organizational changes have
made work family interface a crucial area of concern for scholars and professionals.
 Problems in Case of Infosys
 Managing Workforce Diversity: Infosys grew from 573 employees in 1994 to
25,634 employees in 2004. it added around 10000 new employees in 2003-04
fiscal year.
 The number of locations and the diversity of its workforce had also increased
dramatically over recent years. Hence preservation of middle class Indian values that
had been so important to its success to date became a challenge in such a rapidly
growing organization.
 As listed in Exhibit 4, Infosys has to still diversify the workforce to maintain a health ratio
between Male and Female Employees (As of 2004 the count of female employees
was 5801 against 25634 total number of employees).
 The world of work is witness to major changes in work force demographics which
include the changing participation rates for working women and working mothers, the
rise in dual-career couples, the increase in the number of single parent families, and
the increase in the elderly population, which have created difficulties at the work-
family interface.
 Solution
 Robust employee performance appraisal programme which is fair and
transparent: The biggest shortcoming of annual reviews - and the main
reason more and more companies are dropping them - is this: With extra
emphasis on financial rewards and punishments and end-of year
structure, company hold people responsible for past behavior at the cost
of improving current performance and grooming talent for the future,
both of which are crucial for organizations long-term survival'.
 Infosys could start frequent "check-ins," during which managers provide
coaching and advice. Simply, Check-ins are designed to communicate what is
expected of staff and to allow managers to give and receive feedback, assist
employees with performance enhancement, and to guide them in their growth
and development.
 Solution Contd…
 Formulating Anti Bribing Policy: Infosys must do all they can to ensure risks of
bribery and corruption are kept to an absolute minimum. Anti Bribery & Corruption
Policies should aim to:
 Demonstrate its understanding of anti-bribery law.

 Emphasize that the company has zero-tolerance for bribery.

 Detail whom the policy applies to.

 Detail the company and employees’ responsibilities.

 Reduce and control bribery risks.

 Provide rules about accepting gifts.

 Provide guidance on how business should be conducted so to prevent bribery.

 Provide direction on how to avoid conflicts of interest.

 Include information about monitoring and reviewing the policy.

An anti-bribery policy demonstrates a company’s commitment to preventing

bribery and corrupt activities, and all staff should be instructed to familiarize
themselves with the information it contains. Having this policy in place ensures that
everyone knows what to do in regards to preventing bribery, which minimizes the
risks of bribery and corruption occurring in your business and therefore protects
your company from facing any issues with the law.
 Solution Contd…
 Robust Training Programme: At some level change does not occur until individual
behavior changes. The third strategic driver of the employee’s role is to advocate
individual behavior changes, both inside and outside global business services, in a
way that facilitates the desired outcomes. This may be as simple as teaching
managers to follow a new automated process or as complicated as identifying the
‘work-arounds’, understanding why they occur and how to eliminate them.
 Attracting Female Employees: Infosys could formulate HR policies to implementing
maternity leaves for 2 months. They could also introduce crèches for working
mothers. The main constraint of female employee to join any IT company is the lack
of Truly Flexible Schedules,.
 Infosys could do a pilot run by offering female employees Truly Flexible Schedules. Entry and
mid-level women need to see their career paths within a company, and if men dominate
the C-suite, women are less likely to believe climbing the corporate ladder is a worthwhile
endeavor.

 Infosys could put Women in Leadership positions. Reputation—being known as a company

that promotes gender equality—will go a long way in attracting top female talent. And
offering a generous paternity leave policy is one of the most effective ways to demonstrate
a commitment to women and working families.
 Solution Contd…
 Ramping up BPO Business by introducing either by new learning
techniques or by hiring best talents: Well-thought out and consistent
communication across channels and the hiring process is important.
Being transparent to prospective employees is very essential. They
would inform they expect employees to multi-task, work long hours,
contribute to social causes beyond work, etc. It would give
prospective employees a good sense of the company’s mission, vision,
and values so they can slip into their roles easily and start contributing
productively from day one.
 Stock Options: Infosys could formulate policies to provide company
shares to the employees in subsidized rate. Since they ran into legal
issues while providing company shares to international employees, they
would work with respective trade & law departments of the foreign
countries so that employee share purchase plan could be made
viable.
Thank
You