The Evolution of Infosys : From Outsourcing Giant to Global Digital Transformation Innovator

Introduction to Infosys Limited

Infosys is a NYSE listed global consulting and IT services company. From a capital of US$250, they have grown to become a US$ 18.8 billion (LTM Q2 FY25 revenues) company with a market capitalization of US$ 92.47 billion. In their journey of over 40 years, they have catalyzed some of the major changes that have led to India’s emergence as the global destination for software services talent. They pioneered the Global Delivery Model and became the first IT Company from India to be listed on NASDAQ. Their employee stock options program created some of India’s first salaried millionaires.It is an Indian multinational technology company that offers business consulting, information technology, and outsourcing services.

Incorporation – 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 all of whom were former emplyees of Patni Computer Systems. They started off as Infosys Consultants Pvt Ltd. in Pune, Maharashtra.

Worldwide Locations – Major presence of Infosys is in India, United States, China, Australia, Japan, Middle East and Europe.

Mission/Vision of Infosys Limited (INFY)

Infosys Limited mission its commitment to navigate clients digital transformation journey  through next generation services and consulting. It highlights the importance of delivering high-quality solutions that empower businesses. enhances human potential  and create opportunities for communities globally.

As of 2024, Infosys Limited (INFY) envisions itself as a global leader in next generation digital services and consulting The company aims to empower clients to navigate their digital transformation journeys, leveraging advanced technologies such as Al and cloud solutions to enhance operational efficiencies and customer experiences.

Infosys Limited – Founder Details

Narayana Murthy is the founder of Infosys, an Indian software company which was the first Indian company to be listed on an American stock exchange. He co-founded Infosys in 1981 along with six other software engineers. Murthy served as the CEO from 1981 to 2002 and as the chairman from 2002 to 2011. N. R. Narayana Murthy was born on 20 August,1946 in Sidlaghatta, a city in India’s south-western state of Karnataka , he is an Indian billionaire businessman. As of August 2024, his net worth was estimated to be $5.1 billion, making him the 606th richest person in the world, according to Forbes.

  • Narayana Murthy Education

Narayana Murthy completed his schooling from Sharada Vilasa Boys High  school, Mysore. After that, he completed his graduation from the National Institute of Engineering in 1967 with a bachelor’s degree in electrical engineering. In 1969, he received his Master’s degree from the Indian Institute of Technology Kanpur. He also received an honorary degree from Lancaster University.

  • Narayana Murthy Career

Narayana Murthy began his career as a research associate at IIM Ahmedabad before becoming the chief systems programmer, where he contributed to India’s first time-sharing computer system and developed a BASIC interpreter for Electronics Corporation of India Limited. After founding Softronics, which failed after a year, he joined Patni Computer Systems in Pune. Murthy has served as an independent director on boards such as HSBC, DBS Bank, Unilever, ICICI, and NDTV, and is a member of various advisory boards for institutions like Cornell University, INSEAD, ESSEC, and the Ford Foundation. He is also a trustee of the Infosys Prize, Institute for Advanced Study in Princeton, and the Rhodes Trust, and chairs the Governing Board of the Public Health Foundation of India. Additionally, he serves on the Asia Pacific advisory board of British Telecommunications. Murthy is the author of several books, including A Better India: A Better World (2009), A Clear Blue Sky (2017), The Wit and Wisdom of Narayana Murthy (2016), and Mere Business Mantra (Hindi).

  • Narayana Murthy Awards & Honors

The individual has received numerous prestigious awards, including the Padma Shri (2000) and Padma Vibhushan (2008) from the Government of India. He was named Ernst & Young World Entrepreneur of the Year (2003) and received the IEEE Ernst Weber Engineering Leadership Recognition (2007). He was also honored with the CBE (2007) by the UK and the Officer of the Legion of Honour (2008) by France. In 2011, he became NDTV’s Icon of India and received Philanthropist of the Year at The Asian Awards (2013). His additional honors include the CIF Global Indian Award (2014) and the 2024 India Lifetime Achievement Award by Chiratae Ventures.

Infosys Products and Services

Infosys offers software development, maintenance, and independent validation services across industries such as finance, insurance, manufacturing, among others. Through its subsidiary Infosys Consulting, it provides consulting services in digital experience, cloud, data analytics, artificial intelligence, engineering, and sustainability. Its subsidiary Infosys BPM provides outsourcing services for business processes such as finance, procurement, customer service, and HR. Infosys offers digital products and platforms for digital transformation, including Finacle, Panaya, Infosys Equinox, Infosys Meridian, Edge Verve and Infosys Cortex.

IPO of Infosys

Infosys made an initial public offer in February 1993 and was listed on stock exchanges in India in June 1993. Trading opened at ₹ 145 per share compared to the IPO price of ₹ 95 per share. In October 1994, Infosys made a private placement of 5,50,000 shares at ₹ 450 each to Foreign Institutional Investors (FIIs), Financial Institutions (FIs) and Corporate. During March 1999, Infosys issued 20,70,000 ADSs (equivalent to 10,35,000 equity shares of par value of ₹ 10 each) at $34 per ADS under the American Depositary Shares Program and the same were listed on the NASDAQ National Market. During December 2012, Infosys was listed on the NYSE Market.

Founding Round of Infosys

 

Date of funding

 

 

Funding Amount

 

 

Round Name

 

 

April 01, 2008

 

     $100M  

Post IPO

Dividends of Infosys

Ex-Date Type Dividend (₹)
29 Oct, 2024 Interim 21.00
31 May, 2024 Final 20.00
31 May, 2024 Special 8.00
25 Oct, 2023 Interim 18.00
02 Jun, 2023 Final 17.50
27 Oct, 2022 Interim 16.50
31 May, 2022 Final 16.00
26 Oct, 2021 Interim 15.00
31 May, 2021 Final 15.00
23 Oct, 2020 Interim 12.00

 

Bonus of Infosys

Announcement Date Ex-Bonus Date Bonus Ratio
13 Jul, 2018 04 Sep, 2018 1:1
24 Apr, 2015 15 Jun, 2015 1:1
10 Oct, 2014 02 Dec, 2014 1:1
14 Apr, 2006 13 Jul, 2006 1:1
13 Apr, 2004 01 Jul, 2004 3:1
25 Jan, 1999 08 Feb, 1999 1:1
18 Jun, 1997 19 Aug, 1997 1:1
30 Jun, 1994 19 Aug, 1994 1:1

 

Split of Infosys

Announcement Date Ex-Split Date Old FV New FV
30 Nov, 1999 24 Jan, 2000 10 5

 

Stock Rate Face value Book value Beta value Market cap. TTM   EPS Sector PE
₹1,936 (as on 6 Dec, 2024) 5 212.23 0.70 7,99,099 64.90 38.34

 

  • Growth and Revenue – According to Infosys’s latest financial reports the company’s current revenue (TTM ) is ₹ 1.594 Trillion. In 2023, the company made a revenue of ₹ 1.544 Trillion an increase over the revenue in the year 2022, that were of ₹ 1.484 Trillion.
  • Awards and Recognitions – In 2024, Infosys earned the Global Top Employer certification in 20 countries and was recognized as one of the World’s Most Ethical Companies for the fourth consecutive year by Ethisphere. The company also ranked among the Top 100 Most Valuable Brands globally by Kantar’s BrandZ and was recognized as one of the most-trusted brands in India and the US. Infosys secured its place in the Top 3 IT services brands globally for the third consecutive year by Brand Finance. Additionally, it recorded the fastest CAGR in brand value in the IT services sector over five years, according to the Global 500’ 2024 report.

Competitors of Infosys

  • Capgemini
  • Cognizant
  • Accenture
  • Tech Mahindra
  • Wipro

Conclusion

In conclusion, Infosys stands as a global IT leader with a strong brand reputation, extensive global presence, and robust delivery capabilities. Its history of pioneering work and innovative approaches, combined with a commitment to emerging technologies, AI initiatives, and employee welfare, positions the company for continued growth and success. As a dynamic force in the global business landscape, Infosys remains dedicated to providing cutting-edge solutions and driving innovation across industries.

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