Infosys

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Infosys Limited
Type Public
Traded as BSE: 500209
NSE: INFY
NYSE: INFY
BSE SENSEX Constituent
CNX Nifty Constituent
Industry IT services,
Founded 1981
Founder(s)
Headquarters Electronics City, Bangalore, Karnataka, India
Area served Worldwide
Key people N. R. Narayana Murthy
(Executive Chairman)
S. D. Shibulal
(CEO & MD)
S. Gopalakrishnan
(Executive Vice Chairman, former Co-Chairman)
Products
Revenue Increase US$ 7.39 billion (2013)[1]
Operating income Decrease US$ 1.90 billion (2013)[1]
Profit Increase US$ 1.72 billion (2013)[1]
Total assets Increase US$ 8.53 billion (2013)[1]
Total equity Increase US$ 7.33 billion (2013)[1]
Employees 160,227 (September 2013)[2]
Divisions Infosys BPO
Lodestone Management Consultants
Website infosys.com

Infosys (formerly Infosys Technologies) is an Indian multinational provider of business consulting, information technology, software engineering and outsourcing services. It is headquartered in Bengaluru, Karnataka.[3] Infosys is the third-largest India-based IT services company by 2012 revenues,[4] and the second largest employer of H-1B visa professionals in the United States, as of 2012.[5] On 28 March 2013, its market capitalisation was $30.8 billion, making it India's sixth largest publicly traded company.[6][7]

History

Infosys was co-founded in 1981 by N. R. Narayana Murthy, Nandan Nilekani, N. S. Raghavan, S. Gopalakrishnan, S. D. Shibulal, K. Dinesh and Ashok Arora after they resigned from Patni Computer Systems. The company was incorporated as "Infosys Consultants Pvt Ltd." with a capital of Rs 10000 (roughly $250) in Model Colony, Pune as the registered office and signed its first client, Data Basics Corporation, in New York. In 1983, the company's corporate headquarters was relocated to Bangalore.
Change in name: It 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.[8]
On 1 June 2013, Mr. Narayana Murthy, one of the founding members of Infosys and its long time CEO, returned from his retirement to assume office in Infosys as its Executive Chairman.[9][10]

Listings

Infosys made an initial public offer (IPO) in February 1993 with an offer price of Rs. 98 per share against book value of Rs. 10 per share. The Infosys IPO was under subscribed but it was "bailed out" by US investment banker Morgan Stanley which picked up 13% of equity at the offer price.[11] Its shares were listed in stock exchanges in June 1993 with trading opening at Rs. 145 per share.[12]
In October 1994, it made a private placement of 5,50,000 shares at Rs. 450 each against book value of Rs. 10 per share to Foreign Institutional Investors (FIIs), Financial Institutions (FIs) and Corporates.
In March 1999, it issued 2,070,000 ADSs (equivalent to 1,035,000 equity shares of par value of Rs. 10 each) at US $34 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.
The share price surged to Rs. 8,100 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.[11]
During July 2003, June 2005 and November 2006, it made secondary ADS issues of US $294 million, US $1.07 billion and US $ 1.605 billion respectively.
In December 2012, Infosys transferred the listing of its American Depositary Shares (ADS) from the NASDAQ to the NYSE.[13]
The credit rating of the company is A- (given by Standard & Poor's on 13-Dec-2013).[14]

Operations

The Headquarters of Infosys is located in Bengaluru

On 31 March 2013, Infosys had 798 clients across 30 countries.[3][15] It earns 62% of its revenue from North America, 23% from Europe, 2% from India and remaining 13% from rest of the world.[15]

Locations
Infosys has a global presence with 73 offices and 94 development centers in the United States, India, China, Australia, Japan, Middle East, and Europe. [16]
In recent years, Infosys has begun shifting operations to the United States and other countries . In 2012, Infosys announced a new office in Milwaukee, Wisconsin to service Harley-Davidson, being the 18th international office in the United States.[17][18] Infosys hired 1,200 United States employees in 2011, and expanded the workforce by an additional 2,000 employees in 2012.[18]

Products and Services

It provides software development, maintenance and independent validation services to companies in banking, finance, insurance, manufacturing and other domains.
One of its known products is Finacle 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.[19][20]
  • In December 2009, Infosys BPO acquired Atlanta-based McCamish Systems for about $38 million.[21]
  • In January 2012, Infosys BPO acquired Australia-based Portland Group, provider of strategic sourcing and category management services, for about AUD 37 million.[22][23]
  • In September 2012, Infosys acquired Switzerland-based Lodestone Management Consultants for about $345 million [24]

Current shareholding

A building in Thiruvananthapuram campus

As of 30 September 2013 (2013-09-30):

Shareholders Shareholding[25]
Promoters group 15.94%
Life Insurance Corporation of India 04.95%
Aberdeen Asset Management PLC 03.89%
Abu Dhabi Investment Authority 02.48%
Oppenheimer Developing Markets Fund 02.33%
Government of Singapore 01.98%
Others 68.43%
Total 100.0%

Initiatives

Main block in Chennai campus

Infosys Foundation
In 1996, Infosys established the Infosys Foundation, to support the underprivileged sections of society.[26] At the outset, the Infosys Foundation implemented programs in Karnataka. It subsequently covered Tamil Nadu, Andhra Pradesh, Maharashtra, Odisha, and Punjab in a phased manner. A team at the Foundation identifies programs in the areas of Healthcare, Education, Culture, Destitute Care and Rural Development.[27]

Academic Entente
Infosys' Global Academic Relations team forges Academic Entente (AcE) with academic and partner institutions.[28] 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.[29]

Infosys Labs
Infosys Labs is organized as a global network of research labs and innovation hubs.[30]

Infosys Labs collaborates with leading national and international universities such as the University of Southern California Viterbi School of Engineering,[31] University of Cambridge, Queens University of Belfast,[32] 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,[33] Indian Institute of Information Technology, Bangalore.[34]

Infosys Prize
Infosys Prize is an annual award given to scientists, researchers, engineers and social scientists in India. It is given by the Infosys Science Foundation, a not-for-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. 50 Lakh.

Employees

The Development Center in Mysore campus

Infosys has a total of 160,000+ employees as of September 30, 2013. Its workforce consists of employees representing 89 nationalities working from 32 countries.[35] Out of its total workforce, 79% are software professionals, 15% are working in its BPO arm and remaining 5% work for support and sales.[15] The attrition rate of Infosys Ltd., excluding its subsidiaries, for 12 months ending 31 March 2013, was 16.3%.[15]
During FY 2012-13, Infosys received 378,994 applications from prospective employees and had a gross addition of 37,036 employees.[36]

Training Centre in Mysore
As the world's largest corporate university, the Infosys global education centre in the 340 acre[37][38] campus has 500 instructors and 200 classrooms, with international benchmarks at its core.[39] Established in 2002, it had trained around 100,000 engineering graduates by June 2012.[39] It can train 12,000 employees with 3 batches of 4000 employees for 4 months each.[40][41]

Infosys Leadership Institute (ILI)
ILI based in Mysore has 96 rooms and trains about 400 Infoscians annually to become 'leaders'.[41]

List of CEOs:

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 till now

Awards and recognitions

  • Infosys was ranked #19 amongst the world's most innovative companies by Forbes.[42]
  • The company was ranked number one among the best managed companies in Asia Pacific in the annual Euromoney BestManaged Companies in Asia survey, 2013 and named a leader in The ForresterWave™: Enterprise Mobility Services, Q1 2013 report.[43]
  • Infosys was identified as one of the top 25 performers in Caring for Climate Initiative by UN Global Compact and UN Environment Program – the only global consulting and technology major in the list. [44]
  • The company also won the Oracle Excellence Award for Specialized Partner of the Year – North America in both Financial Management and Human Capital Management categories, at Oracle OpenWorld2012.[45]
  • Boston Consulting Group has listed it in the list of top ten technology companies for total shareholder return.[46] Infosys was in the list of top twenty green companies in Newsweek's Green Rankings for 2012.[47]
  • It has been voted India's most admired company in The Wall Street Journal Asia 200[48] every year since 2000. The company's corporate governance practices were recognized by The Asset Platinum award[49] and the IR Global Rankings.[50] Infosys was also ranked as the 15th most trusted brand in India by The Brand Trust Report.
  • Infosys Cloud Ecosystem Hub won the 2012 Golden Peacock Award for the most innovative product/service.[51]

Controversies

Allegations 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,[52] it along with another similar case,[53][54][55] 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.[56]
In October 2013, Infosys agreed to settle the civil suit with US authorities by paying US$ 34 million.[57] Infosys refused to admit guilt and stressed that it only agreed to pay the fine to avoid the nuisance of 'prolonged litigation'.[58] 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 untrue and are assertions that remain unproven".[59]

See also

References

  1. ↑ 1.0 1.1 1.2 1.3 1.4 "Form 6-K (EXHIBIT 99.1) dated 12 April 2013 filed by Infosys Limited". www.sec.gov. Retrieved 26 Jun 2013. 
  2. ↑ "Infosys Investor FAQs". Retrieved 16 October 2013. 
  3. ↑ 3.0 3.1 "Infosys Overview". Infosys. Retrieved 19 June 2013. 
  4. ↑ "Top 5 India-Based IT Services Providers' Worldwide Revenue, 2012". Gartner. Retrieved 17 June 2013. 
  5. ↑ "Top 10 Employers". H-1B Temporary Visa Program - Selected Statistics, FY 2012. OFFICE OF FOREIGN LABOR CERTIFICATION. Retrieved 9 June 2013. 
  6. ↑ "Infosys Market Cap (INFY)". ycharts.com. Retrieved 23 Jun 2013. 
  7. ↑ "Market Capitalisation - Top 50". capitalmarket.com. Archived from the original on 2013-03-29. Retrieved 23 Jun 2013. 
  8. ↑ History | About Us. Infosys. Retrieved on 2013-09-23.
  9. ↑ "Murthy returns to save struggling Infosys". Hindustan Times. Retrieved 17 June 2013. 
  10. ↑ "NR Narayana Murthy's letter to Infosys's top brass". Times of India. Retrieved 3 July 2013. 
  11. ↑ 11.0 11.1 "Infosys Technologies Bio". in.com. Retrieved 7 July 2013. 
  12. ↑ "Equity Shares Information". infosys.com. Retrieved 7 July 2013. 
  13. ↑ "Infosys Celebrates Cross-Listing on NYSE Euronext London and NYSE Euronext Paris and Highlights Recent Transfer to NYSE". NYSE. February 2013. 
  14. ↑ "S&P upgrades TCS, Infosys, Wipro to 'A-' from 'BBB+'". Economic Times. 13 December 2013. Retrieved 28 December 2013. 
  15. ↑ 15.0 15.1 15.2 15.3 "Investor Sheet". Infosys.com. Retrieved 9 June 2013. 
  16. ↑ "Worldwide Locations". Infosys.com. Retrieved 19 June 2013. 
  17. ↑ "Services: The next big thing". The Economist. 19 January 2013. Retrieved 10 June 2013. 
  18. ↑ 18.0 18.1 "Infosys to expand its U.S. operations with a new Delivery Center in Wisconsin". Infosys.com. Retrieved 3 July 2013. 
  19. ↑ "Infosys to buy Australian firm Expert for $22.9 m". The Hindu. Retrieved 22 June 2013. 
  20. ↑ "Infosys Media Release - Infosys announces agreement to acquire Expert". Infosys. Retrieved 22 Jun 2013. 
  21. ↑ "Infosys BPO to acquire US company McCamish". Deccan Herald. Retrieved 22 June 2013. 
  22. ↑ "Infosys BPO looking for buyouts to double its revenues to $1 bn". Economic Times. Retrieved 22 June 2013. 
  23. ↑ "Infosys BPO signs definitive agreement to acquire Portland Group Pty Ltd in Australia". BizJournals.com. Retrieved 22 June 2013. 
  24. ↑ "Infosys acquires Swiss firm Lodestone for Rs. 1,925 crore". The Hindu. Retrieved 22 June 2013. 
  25. ↑ "Shareholder structure as of 30 June 2013". bseindia.com. Retrieved 19 June 2013. 
  26. ↑ "Infosys Foundation". Karnataka.com. Retrieved 3 July 2013. 
  27. ↑ "Infosys Foundation". Infosys. Retrieved 3 July 2013. 
  28. ↑ "Academic Entente (AcE)". March 13, 2012. Retrieved October 29, 2012. 
  29. ↑ "Academic Entente". Retrieved 3 July 2013. 
  30. ↑ "Infosys Ltd". The Times Of India. 
  31. ↑ "USC - Infosys CAST". Viterbi School of Engineering. Retrieved October 29, 2012. 
  32. ↑ http://www.infosys.com/newsroom/press-releases/Pages/global-cyber-security-threat.aspx.  Missing or empty |title= (help)
  33. ↑ "Infosys, Israel sign pact for industrial R&D". MoneyControl.com. Retrieved 3 July 2013. 
  34. ↑ "Global Academic Relations". Infosys. Retrieved October 29, 2012. 
  35. ↑ "Sustainability". Infosys.com. Retrieved 19 Jun 2013. 
  36. ↑ "Annual Report 2012-13". Infosys. 17 April 2013. Retrieved 8 September 2013. 
  37. ↑ "Infosys touts resort-like campus to attract talent". Deccan Herald. 16 May 2013. Retrieved 8 September 2013. 
  38. ↑ "Infosys campus reflects commitment to a greener world". Infosys. Retrieved 9 September 2013. 
  39. ↑ 39.0 39.1 "Infosys has trained 100,000 graduates at Mysore campus". Mathrubhumi. 1 June 2012. Retrieved 9 September 2013. 
  40. ↑ "Infosys builds world's biggest training centre in Mysore". Mysore Samachar. 9 September. Retrieved 8 September 2013. 
  41. ↑ 41.0 41.1 "Infy plans biggest training centre". Economic Times. 18 June 2004. Retrieved 9 September 2013. 
  42. ↑ "The world's most innovative companies". Forbes. Retrieved 23 June 2013. 
  43. ↑ "The Forrester Wave™: Enterprise Mobility Services, Q1 2013". liz Herbert,Forrester. Retrieved 9 November 2013. 
  44. ↑ "About us". Infosys. 
  45. ↑ "Oracle Excellence Awards 2012". Oracle Magazine. Retrieved 9 November 2013. 
  46. ↑ "Top performers for TSR between 2005-2009". Boston Consulting Group. Retrieved 17 Jun 2013. 
  47. ↑ "Newsweek's Green Rankings 2012". Newsweek. Retrieved 3 July 2013. 
  48. ↑ "The Wall Street Journal Asia 200". WSJ. 2 November 2010. Retrieved October 29, 2012. 
  49. ↑ "The Asset Platinum Award". Infosys.com. Retrieved 3 July 2013. 
  50. ↑ "IR Global Rankings". Retrieved October 29, 2012. 
  51. ↑ "Innovative Product/Service Award". Retrieved 17 June 2013. 
  52. ↑ Preston, Julia (August 20, 2012). "Judge dismisses Infosys suit". The New York Times (New York Times). Retrieved October 29, 2012. 
  53. ↑ "Former Employee Sues Infosys", August 9, 2012, Wall Street Journal
  54. ↑ "‘Infosys slashed 80% of my portfolio’", Shayan Ghosh, August 14, 2012, Deccan Herald
  55. ↑ "Infosys says settles whistleblower..."", Fri Dec 14 2012, Indian Express
  56. ↑ Thibodeau, Patrick. "Whistleblower to continue helping U.S. Infosys probe". Computerworld. Retrieved 2012-09-27. 
  57. ↑ "Infosys to pay $34m fine within 10 days. settlement not to affect future visas". Times of India. 31 October 2013. Retrieved 2 November 2013. 
  58. ↑ "Infosys doesn’t admit to guilt, but will pay $34 mn US visa fine". First Post. 31 October 2013. Retrieved 2 November 2013. 
  59. ↑ "Infosys settles visa fraud investigation, pays $34m". Times of India. 30 October 2013. Retrieved 2 November 2013. 

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