Narayana Murthy and Infosys

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Case Details:

Case Code : LDEN003
Case Length : 8 Pages
Period : 1981-2001
Pub Date : 2002
Teaching Note : Available
Organization : Infosys
Industry : Software
Countries : India

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Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Excerpts

People Management

Analysts felt that one factor which helped Infosys to grow at a faster pace than others was the low employee turnover.

The turnover rate at Infosys was around 11% as opposed to industry average for software companies' of over 25% during the 1990s.

Infosys' retention capability was a function both of its rigorous selection procedures as well as proactive HRD practices. About 80% of the middle and senior level executives were promoted from within the organization...

Corporate Governance and Infosys

Analysts felt that Infosys became one of the most respected companies in India, through its corporate governance practices, which were better than those of many other companies in India. Narayana Murthy's move to adhere to the best global practices was driven by his vision to become a global player. Infosys adopted the stringent US Generally Accepted Accounting Practices (GAAP) many years before other companies in India did...

Leaders in the Making

In August 2001, Narayana Murthy set up a Leadership Institute in Mysore, India, to manage the future growth of Infosys. The institute aimed at preparing Infosys employees to face the complexities of a rapidly changing marketplace and to bring about a change in work culture by instilling leadership qualities.

Commenting on the institute, Narayana Murthy said, “It is our vision at Infosys, to create world-class leaders who will be at the forefront of business and technology in today's competitive marketplace...

Exhibits

Exhibit I: Awards Received by Narayana Murthy
Exhibit II: Narayana Murthy's Source Code Behind Infosys' Success Story