Success Story of Infosys Narayana Murthy

Profitability of revenues, a good de-risking model.

even young middle-class friends from the western Town of Pune, most of them co-workers at a small software company, quit their jobs to chase a dream, to build a global software company in a country with few computer-users and a socialist-style economy that rarely rewarded entrepreneurship. And the risk has paid off Narayana Murthy is the NonExecutive Chairman and Chief Mentor of Infosys Technologies Limited. He is a living legend. He obtained his Bachelors degree in the University of Mysore in 1967 and his Masters degree of Technology in IIT ,Kanpur. He believed that the only way to pull out poverty in India was to create more jobs by setting up more companies from the beginning Narayana Murthy focused on the worlds most challenging market- US. He had a reason that there was no market for software in India at that time. He believed that Indian software companies should export product in which they had a competitive advantage. In 1987 Infosys entered a joint venture with KSA (Kurt Salmon Associates).In1988-89 it set up is first office at US...Even when they were a small company, they had a global vision, But $1 invested in the company then is now worth $3,300There are four fundamental tenets of any well run business..They are Predictability of revenues, Sustainability of predictions,

Narayana murthys global strategies comprised of three features. The first one was Global delivery model. It emphasized on producing where it is most cost effective to produce and selling where it is most profitable to sell. Second was moving up the value chain which meant getting involved in a software development project at the earliest stage of its life cycle. Third was the PSPD (PSP Developer, A software Engineering Instuite) In August 2001, Narayana Murthy set up a leadership Institute at Mysore to manage the future growth of Infosys He recalls waiting a year to get a telephone connection and three years for a license to import a computer. He launched Infosys in 1981 with six other colleagues on a mere $250 dollars borrowed from his wife. This tiny sum only kept the company going for a short time, but Mr. Murthy says there was

one simple way to remain profitable from the start: you spent less than what you earned, thats all. Today, Infosys has grown from a company of seven workers to a global corporation employing more than 125,000 people, with revenues of billions of dollars. In the late 1970s and early 1980s there was growing demand for customized software. The founders of Infosys realized that this could provide an opportunity for suppliers based in India for Mr. Murthy; the first customer is the most important. They can make or break a start-up. He recalls that when Infosys first launched, the company worked solely with one customer, developing and installing a software package for the clients business in New York. Infosys took a long time to develop. Mr. Murthy attributes this to Indias earlier economic policies, which he believes were not conducive to entrepreneurship. Indeed, Mr. Murthy says he measures the success of his company not on the figures and revenues it generates, but on the happiness it creates. The company started life in 1981, with 7 people and only 250 dollars. Since then, they have grown into a global company that delivers IT solutions for over two thousand other global companies. They have been able to do this by building strong bonds with leading technology providers, meaning that they find out about the technological advances in both hardware and software from their peers and they can get ahead with creating IT

solutions. This helps them get ahead in the market as they can find out what they should be doing to advance before other, They have managed this success and built upon it by taking the business where it will be most profitable and where the talent to grow the business is. This is called a Global Delivery Model in business and is a way of outsourcing skills from other countries across the globe. In 2002, Infosys was ranked No. 1 in the "Best Employers in India 2002" survey conducted by Hewitt and in the Business World's survey of "India's Most Respected Company. -Jeeva Kaviya.S II year - IT.