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Infosys Ltd
Company typePublic
BSE: 500209
NSE: INFY
NYSE: INFY
BSE SENSEX Constituent
CNX Nifty Constituent
IndustryIT services, IT consulting
Founded2 July 1981
Founder
Headquarters
Electronics City, Bangalore, Karnataka
,
India
Area served
Worldwide
Key people
Vishal Sikka (CEO & MD)
ServicesIT, business consulting and outsourcing services
RevenueIncrease ₹591.8 billion (US$7.1 billion) (2015)[1]
Increase ₹153.4 billion (US$1.8 billion) (2015)[1]
Increase ₹136.7 billion (US$1.6 billion) (2015)[1]
Total assetsIncrease ₹721.2 billion (US$8.6 billion) (2015)[1]
Total equityIncrease ₹595.3 billion (US$7.1 billion) (2015)[1]
Number of employees
193,383 (January 2016)[2]
DivisionsInfosys BPO Limited
Lodestone Management Consultants
Websitewww.infosys.com

Infosys Limited (formerly Infosys Technologies Limited) is an Indian multinational corporation that provides business consulting, information technology, software engineering and outsourcing services. It is headquartered in Bangalore, Karnataka.[3]

Infosys is the second-largest India-based IT services company by 2014 revenues,[4] and the fifth largest employer of H-1B visa[5][6] professionals in the United States in FY 2013.[7] On 15 February 2015, its market capitalisation was ₹ 263,735 crores ($42.51 billion), making it India's sixth largest publicly traded company.[8][9][10]

History

Infosys was co-founded in 1981 by CEO Narayan Murthy, Nandan Nilekani, N. S. Raghavan, S. Gopalakrishnan, S. D. Shibulal, K. Dinesh and Ashok Arora after they resigned from Patni Computer Systems.[11] The company was incorporated as "Infosys Consultants Pvt Ltd." with a capital of ₹10,000 or US$1,250 (equivalent to about $4,189 in 2023) in Model Colony, Pune as the registered office.[12] It signed its first client, Data Basics Corporation, in New York.[13] In 1983, the company's corporate headquarters was relocated from Pune to Bangalore.[13]

Change in name: The company changed its name to "Infosys Technologies Private Limited" in April 1992 and to "Infosys Technologies Limited" when it became a public limited company in June 1992. It was later renamed to "Infosys Limited" in June 2011.[14]

An initial public offer (IPO) in February 1993 with an offer price of ₹95 (equivalent to ₹690 or US$8.20 in 2023) per share against book value of ₹20 (equivalent to ₹150 or US$1.70 in 2023) per share. The Infosys IPO was under subscribed but it was "bailed out" by US investment bank Morgan Stanley which picked up 13% of equity at the offer price.[15] Its shares were listed in stock exchanges in June 1993 with trading opening at ₹145 (equivalent to ₹1,100 or US$13 in 2023) per share.[16]

In October 1994, it made a private placement of 5,50,000 shares at ₹450 (equivalent to ₹3,000 or US$35 in 2023) each against book value of ₹10 (equivalent to ₹66 or 79¢ US in 2023) per share to Foreign Institutional Investors (FIIs), Financial Institutions (FIs) and Corporates.[17]

In March 1999, it issued 2,070,000 ADSs (equivalent to 1,035,000 equity shares of par value of ₹10 (equivalent to ₹43 or 52¢ US in 2023) each) at US$34 (equivalent to $62.19 in 2023) per ADS under the American Depositary Shares Program and the same were listed on the NASDAQ National Market in US. The total issue amount was US$70.38 million.[18]

The share price surged to ₹8,100 (equivalent to ₹35,000 or US$420 in 2023) by 1999 making it the costliest share on the market at the time. At that time, Infosys was among the 20 biggest companies by market capitalization on the NASDAQ.[15]

During July 2003, June 2005 and November 2006, it made secondary ADS issues of US$294 (equivalent to $486.95 in 2023) million, US$1.07 (equivalent to $1.67 in 2023) billion and US$1.605 (equivalent to $2.43 in 2023) billion respectively.[19]

In December 2002,Infosys transferred the listing of its American Depositary Shares (ADS) from the NASDAQ to the NYSE.[20]

In July 2014, Infosys spun off a subsidiary, Edgeverve Systems Ltd., focusing on enterprise software products for business operations, customer service, procurement and commerce network domains.[21]

In August 2015, Finacle joins Edgeverve product portfolio.[22]

The credit rating of the company is A- (given by Standard & Poor's on 13-Dec-2013).[23] In February 2015, Infosys announced it would acquire the US automation technology company Panaya for around $200 million.[24]

Operations

The Headquarters of Infosys is located in Bengaluru

On 15 January 2016, Infosys had 1,045 clients across 50 countries.[3][25]

Infosys has a global footprint with offices and development centers across the world.[26]

In 2012, Infosys announced a new office in Milwaukee, Wisconsin to service Harley-Davidson, being the 18th international office in the United States.[27][28] Infosys hired 1,200 United States employees in 2011, and expanded the workforce by an additional 2,000 employees in 2012.[28]

Products and services

It provides software development, maintenance and independent validation services to companies in banking, finance, insurance, manufacturing and other domains.[29]

One of its known products is Finacle[30] which is a universal banking solution with various modules for retail and corporate banking.

Glass building in Pune campus

Acquisitions

  • In December 2003, Infosys had acquired Australia-based IT service provider Expert Information Services for $23 million.[31][32]
  • In December 2009, Infosys BPO acquired Atlanta-based McCamish Systems for about $38 million.[33]
  • In January 2012, Infosys BPO acquired Australia-based Portland Group, provider of strategic sourcing and category management services, for about AUD 37 million.[34][35]
  • In September 2012, Infosys acquired Switzerland-based Lodestone Management Consultants for about $345 million.[36]
  • In March 2015, Infosys acquired Panaya, Inc., a leading provider of automation technology for large scale enterprise software management.[37]
  • In June 2015, Infosys acquired Skava, a leading provider of digital experience solutions, including mobile commerce and in-store shopping experiences to large retail clients. The acquisition of Skava is part of Infosys’ strategy to help clients bring new digital experiences to their customers through IP-led technology offerings, new automation tools and unparalleled skill and expertise in these new emerging areas.[38]
A building in Thiruvananthapuram campus
Shareholders (as on 31-Mar-2014) Shareholding[1]
Promoters group 15.94%
Foreign Institutional Investors (FII)
ADR 16.10%
Individual shareholders 09.95%
Banks, Financial Institutions and Insurance Companies 09.08%
Mutual Funds 04.58%
Others 02.25%
Total 100.00%

Initiatives

Main block in Chennai campus
Infosys, Bangalore

Infosys Foundation

Main article: Infosys Foundation

In 1996, Infosys established the Infosys Foundation, to support the underprivileged sections of society.[39] At the outset, the Infosys Foundation implemented many programs in Karnataka. It subsequently covered Tamil Nadu, Telangana, Andhra Pradesh, Maharashtra, Odisha, and Punjab in a phased manner. A team at the Foundation identifies all the programs in the areas of Healthcare, Education, Culture, Destitute Care and Rural Development.[40]

Academic Entente

Infosys' Global Academic Relations team forges Academic Entente (AcE)[clarification needed] with academic and partner institutions.[41] It explores co-creation opportunities between Infosys and academia through case studies, student trips and speaking engagements. They also collaborate on technology, emerging economies, globalization, and research. Some initiatives include research collaborations, publications, conferences and speaking sessions, campus visits and campus hiring.[42]

Infosys Labs

Infosys Labs is organized as a global network of research labs and innovation hubs.[43]

Infosys Labs collaborates with leading national and international universities such as the University of Southern California Viterbi School of Engineering,[44] University of Cambridge, Queens University of Belfast,[45] University of Illinois at Urbana-Champaign, Indian Institute of Technology Bombay, IITB-Monash Research Academy, Indraprastha Institute of Information Technology, Delhi, Indian Institute of Science, Bangalore, Purdue University,[46] Indian Institute of Information Technology, Bangalore.[47]

Infosys Prize

The Infosys Prize is an annual award given to scientists, researchers, engineers and social scientists connected to India. It is given by the Infosys Science Foundation, a non-profit trust which was set up in February 2009 by Infosys and some members of its Board. The prize is given under six categories. Each category includes a gold medallion, a citation certificate, and prize money of Rs. 65 Lakh.[48][49]

Employees

The Development Center in Mysore campus

Infosys has a total of 193,383 employees as of 15 January 2016, of which 35% were women. Its workforce consists of employees representing 122 nationalities working from 32 countries (37 countries as per the base location). Out of its total workforce, 93.8% are software professionals, 17% are working in its BPO arm and remaining 6% work for support and sales.[25] The attrition rate of Infosys Ltd., excluding its subsidiaries, for 12 months ending 30 September 2015, was 14.2%. And following the annual hike for employees during 2015-16, the attrition rate is likely to increase.[25]

During FY 2014-15, Infosys received 1,519,678 applications from prospective employees and had a gross addition of 53,386 employees.[50]

Training centre in Mysore

As the world's largest corporate university, the Infosys global education centre in the 337 acre[51] campus has 400 instructors and 200 classrooms,[52] with international benchmarks at its core. Established in 2002, it had trained around 125,000 engineering graduates by June 2015.[52] It can train 14,000 employees at a given point of time on various technologies.[53][54]

The Infosys Leadership Institute (ILI), based in Mysore, has 96 rooms and trains about 400 Infoscians annually.[54]

List of CEOs

Vishal Sikka is the CEO and MD of Infosys. Prior to joining Infosys, Dr. Sikka was a member of the Executive Board of SAP AG and the Global Managing Board, leading all SAP products and innovation globally. He took over from S.D. Shibulal, one of the founders, on 1 August.[55] He was inducted as a whole-time director of the Board and CEO & MD (Designate) of Infosys on 14 June.[56] He receives $5.08 Million (₹30 Crores) and stock options worth $2 million as annual compensation.[57]

Name Period
N. R. Narayana Murthy 1981 to March 2002
Nandan Nilekani March 2002 to April 2007
S Gopalakrishnan April 2007 to August 2011
S D Shibulal August 2011 to July 2014
Vishal Sikka August 2014 to date [58]

Awards and recognitions

  • Infosys was ranked 15th largest IT services provider in the world by HfS Research in its 2013 ranking.[59]
  • Infosys was ranked 19th on the world's most innovative companies list by Forbes.[60]
  • Infosys was in the list of top twenty green companies in Newsweek's Green Rankings for 2012.[61]
  • The company has been voted India's most admired company in The Wall Street Journal Asia 200[62]

Controversies

Accusation of visa fraud

In 2011, Infosys was accused of committing visa fraud by using B-1 (visitor) visas for work requiring H-1B (work) visas. The allegations were initially made by an American employee of Infosys in an internal complaint. He subsequently sued the company, claiming that he was harassed and sidelined after speaking out. Although that case was dismissed,[63] it along with another similar case,[64][65][66] brought the allegations to the notice of the US authorities — and the U.S. Department of Homeland Security and a federal grand jury started investigating.[67]

In October 2013, Infosys agreed to settle the civil suit with US authorities by paying US$34 million.[68] Infosys refused to admit guilt and stressed that it only agreed to pay the fine to avoid the nuisance of 'prolonged litigation'.[69] In its statement the company said "As reflected in the settlement, Infosys denies and disputes any claims of systemic visa fraud, misuse of visas for competitive advantage, or immigration abuse. Those claims are assertions that remain unproven".[70]

Allegation of language bias

In July 2014, former US employees of Infosys have filed a lawsuit against it for alleging discrimination because of their inability to communicate in Hindi. According to the lawsuit filed in the US District Court of Eastern District of Wisconsin, the former employees alleged that they were "excluded" from work conversations by their supervisors and co-workers who "regularly spoke in Hindi" in front of them. The case has been filed by Layla Bolten, Gregor Handloser and two more employees. Bolten was hired as a tester, while Handloser was hired by Infosys in 2004 as a sales manager.[71]

Displacement of American workers at Southern California Edison and Disney

In 2015, the Department of Labor investigated Infosys after claims were made that the company used workers with H-1B visas to replace workers at Disney and Southern California Edison. Florida Sen. Bill Nelson also asked the Department of Homeland Security to investigate reports of layoffs at Disney.[72]

Deals

  • House of Fraser, a British-based department store opted for Infosys as strategic partner to transform its business channel, IT infrastructure and to expand its global footprint. This multi-year deal is signed in the presence of Mr. Yuan Yafei, Chairman, Sanpower Group and Dr. Vishal Sikka, Chief Executive Officer, Infosys.[73]
  • Infosys signed up multi year agreement with Deutsche Bank for supporting in development, application maintenance, digital and mobility, package implementation and testing services. This collaboration with Infosys will help Deutsche bank to achieve its goals.[74]

Noteworthy sustainability practices

In 2015, the company joined RE100, a global group of companies that aims to generate their energy fully from renewable sources.[75] Infosys aims for this by 2018, and expects to go carbon neutral by the same year.[76][77]

See also

References

  1. ^ a b c d e f "Infosys Financial Statements 2015". Infosys Ltd.
  2. ^ "Infosys Fact Sheet" (PDF). Retrieved 15 January 2016.
  3. ^ a b "Infosys Overview". Infosys. Retrieved 9 June 2014.
  4. ^ "Top 5 India-Based IT Services Providers' Worldwide Revenue, 2012". Gartner. Retrieved 9 June 2014.
  5. ^ "INFOSYS LIMITED". Retrieved 2 July 2015.
  6. ^ "INFOSYS TECHNOLOGIES LIMITED". Retrieved 2 July 2015.
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  8. ^ "Infosys Market Cap (INFY)". ycharts.com. Retrieved 8 June 2014.
  9. ^ "Top 100 Companies by Market Capitalization BSE". BSE. Retrieved 15 February 2015.
  10. ^ "Infosys Q2 Profit Rises to Rs. 3,096 Crore, Shares Jump on Bonus Issue". NDTV. Retrieved 10 October 2014.
  11. ^ "Murthy to Patni, with love". The Economic Times. 18 October 2002. Retrieved 30 November 2014.
  12. ^ "The amazing success story of Infosys". Rediff.com. Retrieved 30 November 2014.
  13. ^ a b "Reports, Company History, Directors Report, Chairman's Speech, Auditors Report of Infosys". NDTVProfit.com. Retrieved 30 November 2014.
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  15. ^ a b "Infosys Technologies Bio". in.com. Retrieved 7 July 2013.
  16. ^ "Equity Shares Information". Infosys. Retrieved 7 July 2013.
  17. ^ "Infosys Shareholder Information". Infosys. Retrieved 25 September 2015.
  18. ^ Barney, Matt (8 December 2010). Leadership@UK. Penguin UK. pp. 17, 248. ISBN 8184754167.
  19. ^ "Infosys prices sponsored secondary issue at $49 per ADS". siliconindia news. 1 August 2003.
  20. ^ "Infosys Celebrates Cross-Listing on NYSE Euronext London and NYSE Euronext Paris and Highlights Recent Transfer to NYSE". NYSE. February 2013.
  21. ^ "Edgeverve is born". Business Standard. 17 November 2014. Retrieved 11 December 2015.
  22. ^ "Finacle joins Edgeverve". Business Standard. 5 September 2015. Retrieved 11 December 2015.
  23. ^ "S&P upgrades TCS, Infosys, Wipro to 'A-' from 'BBB+'". The Economic Times. 13 December 2013. Retrieved 28 December 2013.
  24. ^ "Infosys buys U.S. automation tech firm for enterprise value of $200 million" (Press release). Reuters. 15 February 2015.
  25. ^ a b c "Investor Sheet". Infosys.com. Retrieved 22 May 2014.
  26. ^ Infosys has a global footprint with offices and development centers across the world., Infoys.com, 21 May 2015
  27. ^ "Services: The next big thing". The Economist. 19 January 2013. Retrieved 10 June 2013.
  28. ^ a b "Infosys to expand its U.S. operations with a new Delivery Center in Wisconsin" (PDF). Infosys.com. Retrieved 3 July 2013.
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  30. ^ "Core Banking Systems -- Gartner Says The Debate Has Shifted". Gartner. 26 November 2014.
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  32. ^ "Infosys Media Release — Infosys announces agreement to acquire Expert url=http://www.infosys.com/australia/news/Documents/infosys-acquires-expert.pdf". Infosys. {{cite web}}: |access-date= requires |url= (help); Missing or empty |url= (help); Missing pipe in: |title= (help)
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  34. ^ "Infosys BPO looking for buyouts to double its revenues to $1 bn". The Economic Times. Retrieved 22 June 2013.
  35. ^ "Infosys BPO signs definitive agreement to acquire Portland Group Pty Ltd in Australia". The Business Journals. Retrieved 22 June 2013.
  36. ^ "Infosys acquires Swiss firm Lodestone for Rs. 1,925 crore". The Hindu. Retrieved 22 June 2013.
  37. ^ "Infosys buys automation technology startup Panaya, deal valued at Rs 1200 crore". The Economic Times.
  38. ^ "Infosys Completes Acquisition of Skava". Infosys Limited.
  39. ^ "Infosys Foundation". Karnataka.com. Retrieved 3 July 2013.
  40. ^ "Infosys Foundation". Infosys. Retrieved 3 July 2013.
  41. ^ "Academic Entente (AcE)". 13 March 2012. Retrieved 29 October 2012.
  42. ^ "Academic Entente". Retrieved 3 July 2013.
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  44. ^ "USC — Infosys CAST". Viterbi School of Engineering. Retrieved 29 October 2012.
  45. ^ "Infosys — Queen's University Strategic Partnership — Cyber Security Threats & Consulting". 16 April 2013. Retrieved 21 May 2014.
  46. ^ "Infosys, Israel sign pact for industrial R&D". MoneyControl.com. Retrieved 3 July 2013.
  47. ^ "Global Academic Relations". Infosys. Retrieved 29 October 2012.
  48. ^ "Infosys Prize — Securing India's scientific future". Infosys Science Foundation. Retrieved 7 June 2014.
  49. ^ "7 scientists, academics bag Infosys Prize". The Hindu. Retrieved 7 June 2014.
  50. ^ "Annual Report 2012-13" (PDF). Infosys. 17 April 2013. Retrieved 8 September 2013.
  51. ^ "Infosys campus reflects commitment to a greener world". Infosys. Retrieved 9 September 2013.
  52. ^ a b "Infosys has trained 100,000 graduates at Mysore campus". Mathrubhumi. 1 June 2012. Retrieved 9 September 2013.
  53. ^ "Infosys builds world's biggest training centre in Mysore". Mysore Samachar. 9 September. Retrieved 8 September 2013. {{cite web}}: Check date values in: |date= (help)
  54. ^ a b "Infy plans biggest training centre". The Economic Times. 18 June 2004. Retrieved 9 September 2013.
  55. ^ "Infosys Names Vishal Sikka First External CEO; Chairman Murthy to Step Down". NDTV Gadgets. Retrieved 2 July 2015.
  56. ^ Infosys Limited. "Infosys to appoint Dr. Vishal Sikka as Chief Executive Officer & Managing Director". Retrieved 2 July 2015.
  57. ^ "Infosys to pay its CEO Vishal Sikka Rs. 30 Crores annually". news.biharprabha.com. Indo-Asian News Service. Retrieved 3 July 2014.
  58. ^ "Vishal Sikka to be CEO and MD of Infosys from August 1". news.biharprabha.com. Retrieved 12 June 2014.
  59. ^ "TCS joins top 10 global IT services companies club". The Times of India. 22 April 2014. Retrieved 8 June 2014.
  60. ^ "The world's most innovative companies". Forbes. Retrieved 23 June 2013.
  61. ^ "Newsweek's Green Rankings 2012". Newsweek. Retrieved 3 July 2013.
  62. ^ "The Wall Street Journal Asia 200". The Wall Street Journal. 2 November 2010. Retrieved 29 October 2012.
  63. ^ Preston, Julia (20 August 2012). "Judge dismisses Infosys suit". The New York Times. Retrieved 29 October 2012.
  64. ^ "Former Employee Sues Infosys", 9 August 2012, The Wall Street Journal
  65. ^ "‘Infosys slashed 80% of my portfolio’", Shayan Ghosh, 14 August 2012, Deccan Herald
  66. ^ "Infosys says settles whistleblower...", 14 Dec 2012, The Indian Express
  67. ^ Thibodeau, Patrick. "Whistleblower to continue helping U.S. Infosys probe". Computerworld. Retrieved 27 September 2012.
  68. ^ "Infosys to pay $34m fine within 10 days. settlement not to affect future visas". The Times of India. 31 October 2013. Retrieved 2 November 2013.
  69. ^ "Infosys doesn't admit to guilt, but will pay $34 mn US visa fine". First Post. 31 October 2013. Retrieved 2 November 2013.
  70. ^ "Infosys settles visa fraud investigation, pays $34m". The Times of India. 30 October 2013. Retrieved 2 November 2013.
  71. ^ "Former US employees of Infosys file a law suit". Deccan-Journal. Retrieved 18 July 2014.
  72. ^ "Department Of Labor Launches Investigation Into H-1B Visa Program". Daily Caller. Retrieved 28 February 2016. {{cite web}}: Cite has empty unknown parameter: |1= (help)
  73. ^ http://www.indiainfoline.com/article/news-top-story/house-of-fraser-selects-infosys-to-deliver-strategic-retail-transformation-program-115042800283_1.html
  74. ^ http://www.financialexpress.com/article/companies/infosys-signs-multi-year-agreement-with-deutsche-bank/97142/
  75. ^ Infosys Limited. "Infosys Becomes the First Indian Company to Join RE100 Renewable Energy Campaign". Retrieved 2 July 2015.
  76. ^ PTI. "Infosys aims to go green by 2018". The Hindu Business Line. Retrieved 2 July 2015.
  77. ^ "Infosys to switch to renewable energy, go carbon neutral". Down To Earth. Retrieved 2 July 2015.

External links

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