History of Infosys
Infosys was founded in 1981 by N. R. Narayana Murthy in Pune, with a capital of only $250. It is an IT services company offering business consultancy and enterprise solutions to clients at both national and international levels. Headquartered in Bengaluru, it is one of the largest players in the IT sector globally, being one of the top 3 IT services brands in the world.
In 1987, the company opened its first international office in Boston, USA. Infosys’s IPO was floated in February 1993 with an offer price of ₹95 per share against a book value of ₹20 per share. Trading had, however, opened with an impressive premium of ₹145 per share. In March 1999, it became the first Indian company to be listed in NASDAQ by issuing 20,70,000 American depository shares at $34 per ADS. By 2004, its annual revenues had reached $1 billion. In recent years, Infosys has partnered with a wide range of major multinationals, such as Microsoft and NVIDIA, for AI development. Infosys has grown to be worth $67 billion as of Q1 FY 2024.
Business Segments
Infosys offers its pool of human and technological resources to help enterprises make their businesses more efficient, especially by developing their digital capabilities. In short, Infosys primarily operates in the following segments:
- Digital Services: It involves enabling the clients to transform their businesses into a more digitally capable and efficient model. Offerings include solutions that enhance customer experience, leverage AI and data science, produce digital products, modernise legacy tech systems, and migrate to cloud applications along with advanced cyber-security systems. Some of the key areas of services include digital marketing, digital workplace platforms, blockchain, Internet of Things, metaverse, etc.
- Core Services: This segment comprises traditional services such as product engineering and management, infrastructure management, enterprise application and support services.
In order to transform certain services into scalable products, the company also builds and offers various platforms such as Infosys Finacle, Infosys McCamish, Panaya, Infosys Meridian, Helix, Equinox, Wingspan, Edgeverve, and Stater, among others. In terms of sectors, Financial services occupies the largest share of the revenue while geographically, North America does the same. Other sectors where Infosys offers its services include industrial engineering, consumer goods, mining, agriculture, retail, life sciences, etc. Around 185 of the Fortune 500 companies can be counted as clients of Infosys.
Key Personnel of Infosys
R. Narayana Murthy, Founder
Mr. Murthy is the founder of the company and has served as the CEO and chairman. He was responsible for scaling the company from its birth to being one of the largest IT services brands in the world. After his role as CEO ended in 2002, he went on to perform other roles in Infosys as chairman of the board and then chairman emeritus. Before Infosys, he had also founded another company named Softronics. He, along with his founding team of six engineers, developed a global delivery model for IT services being outsourced by foreign companies from India. Over time, he not only expanded his business but has also served as a member of the boards of multiple companies.
Nandan M. Nilekani, Co-founder and Chairman
Mr. Nilekani was the founding chairman of the Unique Identification Authority of India. Currently, he is a Co-founder and Chairman of the Board at Infosys. Earlier, he was the CEO of Infosys from 2005-07. He is also a serial investor whose portfolio includes companies like Tracxn, RailYatri, etc.
Salil Parekh, CEO and MD
Mr. Parekh has over three decades of experience in the IT services industry at a global level. He has conducted many business turnarounds, digital transformations and successful acquisitions in his career. Before joining Infosys, Salil was a member of the Group Executive Board at Capgemini, where he worked for 25 years. There, he oversaw Application Services in North America, the UK, Asia, Cloud Infrastructure Services, and Sogeti, i.e. the Technology & Engineering Services Division. Before that, he had worked for over 7 years as a partner at Ernst & Young, where he was credited for scaling the Indian operations of the firm.
Corporate Actions
Infosys’ corporate actions over the last few years include:
Bonus Shares
- 1:1 shares, ex-bonus on September 4, 2018
- 1:1 shares, ex-bonus on June 15, 2015
- 1:1 shares, ex-bonus on December 2, 2014
- 1:1 shares, ex-bonus on July 13, 2006
Share Buyback
Infosys conducted a buyback of its shares at the face value of ₹5 per share in 2017.
Mergers and Acquisitions
The following are some of the most recent acquisitions done by Infosys:
- BASE on July 13, 2022
- Oddity in March 22, 2022
- Carter Digital on January 13, 2021
- Simplus in February 2020
- Blue Acorn iCi in 2018
Management Outlook
The management is looking towards continuing its focus on scaling agile digital capabilities, energising the core activities, reskilling the workforce, and expanding localisation.
They are trying to expand their digital footprint via reskilling of employees, targeted
acquisitions, strong ecosystem partnerships, innovation experience centres across the world, intellectual property development, reconfiguring workspaces for agile software development and enhancing their brand.
