Infosys provides IT consulting, outsourcing, and software services globally, prioritizing innovation and efficiency in its business model.

What is the Business Model of Infosys company?

14 minutes, 26 seconds Read

Introduction  –

The Business Model of Infosys company focuses on providing IT consulting, outsourcing, software services to clients globally, with innovation. We will try through this article about India’s second number IT company Infosys and will know how the future of this company will be based on comparative analysis. Narayan Murthy has been its founder chairman, although its co-founders are many people who have been cooperative of Narayan Murthy when he used to work in Patni Computers. Therefore, through this article, we will study the success of Infosys, from which how IT companies work and mainly how this company became so successful.

This company is not created out of any family heritage, so for any new entrepreneur, it is like a university, we should see it. We will see how the Infosys company works and we will try to know how the company is performing at the international level. We will try to find out what is the reason for the success of Infosys company, which many IT companies are formed and closed.

From a comparative point of view, what are the competing companies of Infosys company and what are their features. From this article we will try to know how the company has performed in the Indian stock market and international stock market and what is its history. We have studied that case studies of most companies are available in large quantities in English, so it is our endeavor that we try to make more and more articles available in Hindi through such case studies.

Infosys Company History –

Starting from Rs 10,000 in 1981, the company’s market capitalization today is US$ 80 billion, which is said to be a big achievement in itself, and it is considered to be the fourth company in India. If we talk about the IT sector, then it is the second largest company in India, whose main international competitor is TCS, which is the most important company of Tata Group. In 1999, Infosys was the first company in India to be listed on the Nasdaq of America and today it has established its business in many countries.

The establishment of the company started from a flat in Pune which was later shifted to Bangalore with the founding members like Narayana Murthy and Nandan Nilikani in the 40 years of the company’s journey. This period was such that one had to wait for years to get a telephone connection and had to wait till 1983 to get the first computer of Infosys, this was the period when the Infosys company was established. When it was established on 2 July 1981, it was named Infosys Consultant Private Limited.

In the Indian stock market, the company brought its IPO in 1983, which did not achieve much success, but soon the company started getting good contracts at the international level. There was a time when the company did not get any special work from India and had to depend completely on foreign companies. After 1990, times changed and foreign investment became easier in India, due to which India’s market grew very fast and companies like Infosys in the IT sector got a big opportunity to increase themselves.

Narayan Murti & Infosys Company  –

Narayana Murthy was born on 20 August 1946 in Karnataka village, his father was a teacher and as the family grew up, Narayana Murthy had a dream to complete his engineering from an IIT institution, but in the end he did his own from the National Institute of Engineering, Mysore. He completed his B Tech degree and completed his further education from IIT Kanpur. Prior to founding Infosys, he was working as Chief Computer Engineer at IIM Ahmedabad and then at Patni Computer.

Narayana Murthy was the founding chairman of Infosys, who resigned from all positions in 2011 and independently left Infosys as the company’s board of directors. Again in 2013 as “Executive Chairman” but after that he did not interfere in the permanent work of the company. He was involved in the company as an honorary chairman which is a position like a mator. In 2017, the dispute between him and the company’s CEO Vishal Sikka was in the media, due to which the company’s shares had to suffer in the stock market.

Narayan Moorthy wants to keep all business in his company transparent, and Vishal Sikka was brought to Infosys as India’s most expensive CEO, which Narayan Murthy did not like. He himself believed in leading a simple life but did not like some of the decisions taken by Vishal Sikka. It is not that Vishal Sikka has been a failed CEO, but Narayan Murthy wanted to set some rules of the company. Therefore, in this struggle, who is right and who is wrong, it is for everyone to decide.

Business Model of Infosys Company  –

  • Next Generation Integrated AI Platform
  • Infosys consulting – Consulting services
  • cloud computing services
  • Infosys Information Platform – Analytics platform
  • Digital Marketing
  • Engineering Services

Finacle This banking software of Infosys company is considered to be the most famous product which is designed for important banks. Infosys company mainly makes software for all types of companies and its related services are provided. The important reason for the success of Infosys company internationally is that the money spent abroad for outsourcing and software service, the products of Infosys company are very cheap.

Knowledge of English language This is the biggest achievement for the engineer of Infosys company, it is considered important to be successful in the international market. In order to keep its employees connected with the company through the Aesop scheme, the company made thousands of employees the shareholders of the company so that they can earn a lot of money and created more dedicated employees for the company, due to which the company has created a positive brand in the market. And the company has more than 2 lakh seventy thousand employees work all over the world.

Infosys company does most of its projects with foreign companies, so that they have to see the largest share in their profits, but the company works for the GST and Income Tax portal of the Government of India, but most of the IT companies are not willing to work for the government. . There are many reasons for this, in which low rates and delays for payment and any government site is very complicated to build because more people use it and they are ordinary people. Due to which no project is completed till the last minute and changes always have to be made in it.

Share Market & Infosys Company  –

Infosys had listed the company’s IPO in the Indian stock market in 1993, which is priced at Rs 1515 today and its base price has been changed once. The company has given bonus shares 11 times to its shareholders in 30 years time and the value of 10000 rupees invested 30 years ago is more than 2 crores today, this return is 160%  which is not in any investment Can meet Infosys became the first company in India to be listed on the Nasdaq stock exchange in the United States in 1999.

Narayan Murthy made this company by taking 10000 rupees from his wife, today the market capitalization of the company has reached 80 billion US dollars, which is one of the ten largest companies in India and is an important company of the Indian stock market. In 1993, when its IPO was listed at Rs 95, it opened on the first day by 50% of its original price of Rs 145 on the first day. The initial base price of the company was Rs 10 per share, which was later raised to Rs 5 per share. Since 2000, Infosys Company has paid dividends continuously to its shareholders.

Through the Aesop scheme, the company’s employees have been made shareholders of the company, due to which many old employees today have received crores of rupees through their shares. The company’s share price is much higher than the company’s fundamentals in the stock market, but due to the good future of the company, even today foreign investment and promoters are keeping their faith in the company. Mutual fund and insurance companies hold shares in Infosys company, so this company is seen as the most important company in India’s stock market.

Infosys Company Vs TCS Company  –

TCS company This Infosys company is considered to be a competitive company not only in India but internationally, and is seen as the largest IT company in India. From the point of view of employees, he prefers to work in TCS company than Infosys. The past few days have seen a lot of problems under the leadership of Infosys, which has seen a lot of criticism by Narayan Murthy on Vishal Sikka, which has resulted in the company’s stock market prices.

Talking about TCS, its leadership has always been seen to be permanent, which has been changed in a very short time since the inception of the company. By the way, both the competing companies provide the same type of service and are considered to be a reliable company in the international IT service market. TCS company has a good history for its employees, in which the process of removal from the employees is very less.

Talking about Infosys company, the evidence of employees leaving their jobs is very high and the evidence of permanent jobs is seen very less than TCS. In terms of salary, the salaries of employees of TSC companies are seen to be good, although the process of making shareholders like Aesop is seen in Infosys, but it has been seen that it is far behind for other facilities as compared to TCS. But still, looking at the problem in India, they work hard to get jobs in both the companies.

Major Clients of Infosys Company –

  • Equatex – Financial services company
  • Aimia – Retail and Consumer Packaging Good company
  • Hilti – Manufacturing Company
  • Kellogg Company – Food Processing Company
  • JFK Health System – Healthcare Company
  • Novasom – Healthcare Devices company

From the banking sector to the production sector, the company is a major customer of the company in all the important sectors, from outsourcing to software design, information and technology related work is done by the company all over the world. Although the main customers of Infosys are foreign companies, but Infosys has worked on many important government projects and portals like Income Tax and GST are provided by Infosys.

Nandan Nilkani has been the founder of Infosys, through which the technology of Aadhar card has been created by the Government of India, which is considered to be the most important service in India’s online service. Therefore, the important customers of Infosys are foreign companies and to get the projects of foreign companies, the company has started its offices in important cities of the world and these projects are completed in India through foreign employees.

Features of Infosys Company –

  • Infosys This company was established in 1981 from the house of Narayan Murthy in Pune, for which a capital of Rs.10,000 was started by his wife.
  • The main products of the Infosys company have been to providing outsourcing and software services, in which companies from banking to manufacturing sector have customers.
  • The company was founded under the leadership of Narayana Murthy with some co-founders like Nandan Nilkani along with Narayana Murthy.
  • The Infosys company IPO was introduced in the Indian stock market in 1993 and the company’s stock was listed in the US stock market in 1999.
  • The company’s share capital is US $ 80 billion, which is considered to be India’s second largest company in the IT sector and TCS is the top company.
  • Narayan Murthy’s objective of transparent behavior and simple lifestyle has been due to which his dispute with the CEO of the company in 2017 was a major topic for the media.
  • Infosys company It is considered to be India’s reputed company in the IT sector, in which employees are made shareholders through a scheme like Aesop.
  • Many employees of Infosys have become owners of lakhs of rupees by becoming the shareholders of the company, through which the company should show the behavior of the company towards the employees.
  • Infosys company’s business is spread over 45 countries of the world and 82 company operates its offices from here and the main office of the company has been established in Bangalore.
  • The company employs about 2.5 lakh employees worldwide and every employee is an employee of an Infosys company in India.
  • Infosys company has bought many small companies related to many IT related companies around the world, which is a strategy to expand the company all over the world.
  • The Initiative is taken by the Infosys company to preserve the culture and architecture of India.

Infosys Company & Social Objects  –

  • About 2.5 lakh jobs have been created by the company in the society, which is a huge achievement for creating employment in the society.
  • Infosys company itself or through NGO wants to reach the poor and hungry people in the society, for this the company’s work is started through different mediums.
  • In the education sector, Narayana Murthy has repeatedly pointed out flaws, for this an engineering college has been established in Bangalore on 350 acres for the development of technology through Infosys Foundation.
  • Initiatives are taken by the company to improve the infrastructure by reaching the villages of India.
  • The work of awakening is done by the company through several programs on the subject of social inequality and rights for women.
  • For the protection of nature, the government does its work by making laws, but it is taken care of by taking the initiative by Infosys, in which we get to see this through various programs and through the company’s infrastructure.

Critical Analysis of Infosys Company  –

Infosys company was established in 1981, the company was headed by Narayan Murthy till 2011 but after that no success has been achieved till date to introduce new leadership in the company. Therefore, the leadership of Vishal Sikka was questioned by Narayan Murthy, due to which the image of the company has been badly affected in the market. If we look at the stability of the employees, then the stability of the employees is seen more in the competitive company TCS. Its second meaning is that the number of employees leaving the company is very high.

Indian companies have been successful in establishing themselves in the world for their technology, but it is seen far behind in the manufacture of technology. That’s why Ratan Tata and Narayan Murthy have criticized India’s education system many times, they believe that good employees get company in case of revision. A lot of money is spent by the company for training the employees, but most of the employees leave the job after becoming experts. How much these IT companies of India benefit for the development of the country, it is a matter of amendment.

The success percentage of IT companies in India is very low and in that too the dominance of IT sector is seen by TCS Infosys and Mahindra companies. If seen, all IT companies provide the same type of IT services, in which foreign companies work from these companies of India, its main reason is cheap services, this is the reason and best services are not seen in priority. Therefore, in case of amendment, more investment in India should be made on the employees, which is lacking.

Business Profile of Infosys Company  –

  • Company Name – Infosys Limited
  • Stock Market – NSE ,BSE NYSE (USA)
  • Industry – Information Technology, Consulting & Outsourcing
  • Company Establishment – 2 July 1981
  • The founders of the company – Narayana Murthy, Nandan Nilekani, S. D. Shibulal, S. Gopalakrishnan, K. Dinesh, NS Raghavan and Ashok Arora
  • Company Headquarters – Bangalore – Karnataka
  • Employee No – 276319 (2021)
  • CEO and Managing Director – Salil Parikh

Conclusion –

This is how we saw how has been the journey of Infosys Company, which is not a family company founded by India’s intelligent IT Engineer. Even though the founder of this company is one, but this company is headed by Narayan Murthy. Even though that Narayan Murthy does not work actively in the company today, but his every advice is considered by the company. He believes that transparency in the company’s dealings and unnecessary expenditure should be banned, so he himself leads a very simple life.

Special attention is paid to the founders of the company not to be from any family ideology, because we get to see most of the companies in India with the influence of any family. That’s why no successful CEO wants to work in any companies in India because the freedom to win while taking decisions in foreign companies is not seen in India. CEOs of most major companies are the founders of the company and want their control over the company. Therefore, it is a very difficult task to determine who is right and who is wrong on the Vishal Sikka and Narayan Murthy controversy.

Through this article, we have tried to know the history of how the Infosys company became successful in the last forty years. The company has been successful in the international IT market, but it appears that the company will have to work hard in terms of revision. This company spends much less than what Google and Samsung spend on their technology modification. In today’s technology era, whoever has the control of technology will rule the world, so companies like Infosys of India have to see this.

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