Infosys Technologies: Building a World Class Organization

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Case Details:

Case Code : BSTA046
Case Length : 22 Pages
Period : 1981 - 2004
Organization : Infosys Technologies
Pub Date : 2004
Teaching Note :Not Available
Countries : India
Industry : Information Technology

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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In 2004, Infosys Technologies, based in India's "Silicon City" of Bangalore, was by most accounts, India's most respected company. Infosys offered a range of customized software development and consulting services to clients all over the world.

The company had set up several dedicated offshore software development centers to serve many global companies. Infosys had grown from a small company run from rented premises in Bangalore, to become one of India's biggest software exporters within two decades. The company had earned a reputation for its principled leadership, professionalism, strong value systems and investor friendliness.

The Infosys share had become one of the most sought after scrips on Indian stock exchanges. In 2004, Infosys recorded sales of $1,062.6 million and a net income of $270.3 million.

Chairman N.R. Narayana Murthy (Murthy), one of the founders, had become a spokesman for Indian industry. A generous philanthropist, Murthy was undoubtedly the most admired businessman in the country.

Background Note

Early History
After receiving a master's degree in electrical engineering from the prestigious Indian Institute of Technology (Kanpur) in the 1960s, Murthy left for France to develop software for the air traffic control system at Paris' Charles de Gaulle airport.

During college, Murthy had believed that communism was the answer to his country's problems of poverty and corruption. This belief became stronger during the time he spent with leftists in Paris in the 1970s. But while riding the Sophia express across Bulgaria in 1975, Murthy's Marxist sympathies evaporated quickly after he was jailed for allegedly disclosing state secrets while talking with Austrian tourists on the train...

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