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From Wikipedia, the free encyclopedia

Infosys Limited

Infosys Pyramid in Bangalore

Type Public

BSE: 500209
Traded as
NSE: INFY

NYSE: INFY

BSE SENSEX Constituent

NSE NIFTY 50 Constituent

 ISIN INE009A010321

Industry Information technology

Consulting

Outsourcing

Founded 2 July 1981; 41 years ago Pune, India

Founders N. R. Narayana Murthy

Nandan Nilekani

Kris Gopalakrishnan

S. D. Shibulal

K. Dinesh

N. S. Raghavan

Ashok Arora

Headquarters Bangalore, Karnataka

, 

India

Area served Worldwide

Key people Nandan Nilekani (chairman)

Salil Parekh (MD & CEO)[1]

 ₹149,468 crore (US$19 billion)[2] (2023)
Revenue

Operating income  ₹33,322 crore (US$4.2 billion)[2] (2023)

Net income  ₹24,108 crore (US$3.0 billion)[2] (2023)

 ₹125,816 crore (US$16 billion)[2] (2023)
Total assets

 ₹75,795 crore (US$9.5 billion)[2] (2023)
Total equity

Number of employees 343,234 (March 2023)[3]

Divisions Infosys BPM

EdgeVerve Systems

Infosys Consulting

Rating CRISIL AAA / Stable / CRISIL A1+

Website www.infosys.com

Footnotes / references
[4]

Infosys Limited is an Indian multinational information technology company that

provides business consulting, information technology and outsourcing services. The
company was founded in Pune and is headquartered in Bangalore.  Infosys is the
[5]
second-largest Indian IT company, after Tata Consultancy Services, by 2020 revenue
figures, and the 602nd largest public company in the world, according to the Forbes
Global 2000 ranking. [6]

On 24 August 2021, Infosys became the fourth Indian company to

reach US$100 billion in market capitalization. It is one of the top Big Tech
(India) companies. [7][8]

History[edit]
Infosys was founded by seven engineers in Pune, Maharashtra, India. Its initial capital
was $150.  It was registered as Infosys Consultants Private Limited on 2 July 1981.  In
[9] [10]

1983, it relocated to Bangalore, Karnataka.

The company changed its name to Infosys Technologies Private Limited in April 1992
and to Infosys Technologies Limited when it became a public limited company in June
1992. It was renamed Infosys Limited in June 2011. [11]

An initial public offering (IPO) was floated in February 1993 with an offer price
of ₹95 (equivalent to ₹580 or US$7.30 in 2020) per share against a book value
of ₹20 (equivalent to ₹120 or US$1.50 in 2020) per share. The IPO was
undersubscribed but it was "bailed out" by US investment bank Morgan Stanley, which
picked up a 13% equity stake at the offer price.  Its shares were listed in June 1993
[12]

with trading opening at ₹145 (equivalent to ₹890 or US$11 in 2020) per share. [13]

Infosys shares were listed on the Nasdaq stock exchange in 1999 as American

depositary receipts (ADR). It became the first Indian company to be listed on Nasdaq. [citation

 The share price surged to ₹8,100 (equivalent to ₹30,000 or US$370 in 2020) by

needed]

1999, making it the costliest share on the market at the time. At that time, Infosys was
among the 20 biggest companies by market capitalization on the Nasdaq.  The ADR[12]

listing was shifted from Nasdaq to NYSE Euronext to give European investors better
access to the company's shares. [14]

In July 2010, then-British Prime Minister David Cameron visited Infosys HQ in

Bangalore and addressed Infosys employees. [15]

Infosys, Bangalore

Its annual revenue reached US$100 million in 1999, US$1 billion in 2004 and

US$10 billion in 2017. [10]

In 2012, Infosys announced a new office in Milwaukee, Wisconsin, to serve Harley-

Davidson.  Infosys hired 1,200 United States employees in 2011 and expanded the
[16][17]
workforce by 2,000 employees in 2012.  In April 2018, Infosys announced expansion
[17]

in Indianapolis, Indiana.
In July 2014, Infosys started a product subsidiary called EdgeVerve Systems, focusing
on enterprise software products for business operations, customer service, procurement
and commerce network domains.  In August 2015, assets from Finacle Global Banking
[18]

Solutions were transferred from Infosys, thus becoming part of the product company
EdgeVerve Systems' product portfolio. [19]

Products and services[edit]

Infosys provides software development, maintenance and independent validation
services to companies in finance, insurance, manufacturing and other domains. [20]

Glass building in Pune campus

Its key products and services are:

 NIA – Next Generation Integrated AI Platform (formerly known as Mana)

 Infosys Consulting – a global management consulting service
 Cloud-based enterprise transformation services [21]

 Infosys Information Platform (IIP), an analytics platform

 EdgeVerve Systems, which includes Finacle, a global banking platform
 Panaya Cloud Suite
 Skava (now Infosys Equinox)
 Engineering Services [22]

 Digital Marketing [23]

 Blockchain [24]

Geographical presence[edit]
Infosys has 82 sales and marketing offices and 123 development centres across the
world as of 31 March 2018, with major presence in India, United States, China,
Australia, Japan, Middle East and Europe. [25][26]

In 2019, 60%, 24%, and 3% of its revenues were derived from projects in North
America, Europe, and India, respectively. The remaining 13% of revenues were derived
from the rest of the world. [27]
In 2022, Infosys's presence in Russia came under scrutiny. Infosys issued a clarification
stating that they don't have active relationships with Russian firms.  By November, [28][29]

2022; the only people working there were administrative staff helping with transferring
the existing contracts to other contractors. [30]

Acquisitions[edit]
Name of the acquired Acquisition
Based in Acquisition cost The business of an acquired company
company date

Expert Information Services Australia US$23 million Dec 2003[31][32] IT service provider

McCamish Systems USA US$38 million Dec 2009[33] Insurance and financial services

Portland Group Australia AUD 37 million Jan 2012[34][35] Strategic sourcing and category management

Lodestone Holding AG Switzerland US$345 million Sep 2012[36] Management consultancy

Panaya Israel US$200 million Mar 2015[37][38] Automation technology

Skava USA US$120 million Apr 2015[39][40] Digital experience solutions

Noah-Consulting USA US$70 million Nov 2015[41] Information management consulting services

Undisclosed
Skytree USA Apr 2017[42] Machine learning
amount

Brilliant Basics UK GBP 7.5 million Aug 2017[43] Product design and customer experience

Fluido Oy Finland EUR 65 million Oct 2018[44] Salesforce advisor and consulting partner

WongDoody USA US$75 million Jan 2019[45] Advertising and creative strategy services

Stater N.V. Netherlands EUR 127.5 million Apr 2019[46] Mortgage services

Simplus USA-AU TBD Feb 2020[47] Salesforce Partner

 Kaleidoscope USA US$42 million Sep 2020[48] Product design and development

Czech
GuideVision EUR 30 million Oct 2020[49] ServiceNow partner
Republic

Digital marketing, Experience, and

Oddity Germany EUR 50 million Mar 2022[50]
Commerce agencies

Infosys has successfully completed the acquisition of BASE life science, a leading
technology and consulting firm in the life sciences industry, in Denmark, Europe. (dated
13th July, 2022).

Listing and shareholding pattern[edit]

Main block in Chennai campus

In India, shares of Infosys are listed on the BSE where it is a part of the BSE

SENSEX and the NSE where it is a NIFTY 50 Constituent.  Its shares are listed by way
[51]

of American depositary receipts (ADRs) at the New York Stock Exchange. [52]

Over a period of time, the shareholding of its promoters has gradually reduced, starting
from June 1993 when its shares were first listed. The promoters' holdings reduced
further when Infosys became the first Indian-registered company to list Employees
Stock Options Schemes and ADRs on NASDAQ on 11 March 1999.  As of 29 July [53]

2021, the promoter holding was 12.95%, foreign institutional investors (FIIs) hold
33.39%, and domestic institutional investors (DIIs) hold 21.98%. [54]
A building in Thiruvananthapuram campus

Infosys shareholding and stakeholders pattern (as of 29 July 2021)[55][56]

Shareholders Shareholding

Promoters group 12.95%

Foreign institutional investors (FII) 33.39%

Domestic institutional investors (DII) 21.98%

Public 31.32%

Others  0.36%

Total 100.00%

Operations[edit]
Employees[edit]
Infosys had a total of 259,619 employees (generally known as "Infoscions") as of 2021,
out of which 38.6% were women.  Out of its total workforce, 229,658 are software
[27]

professionals and remaining 13,796 work for support and sales.  In 2016, 89% of its
[27]

employees were based in India. [57]

During the financial year 2019, Infosys received 2,333,420 applications from
prospective employees, interviewed 180,225 candidates and had a gross addition of
94,324 employees, a 4% hiring rate. These numbers do not include its subsidiaries. [57]
In its Q3FY22 results in January, Infosys has reported that attrition has risen to 25.5%,
from 20.1% in the September quarter. It has announced a profit of Rs 5,809 crore for
the third quarter and said it is planning to hire 55,000 freshers for FY22 as part of its
global graduate hiring program.
Training centre in Mysore[edit]

The Development Centre in Mysore campus

As the world's largest corporate university, the Infosys global education centre in the
337 acre  campus has 400 instructors and 200+ classrooms,  with international
[58] [59]

benchmarks at its core. Established in 2002, it had trained around 125,000 engineering
graduates by June 2015.  It can train 14,000 employees at a given point of time on
[59]

various technologies. [60][61]

The Infosys Leadership Institute (ILI), based in Mysore, has 196 rooms and trains about
4,000 trainees annually.  Its purpose is to prepare and develop the senior leaders in
[61]

Infosys for current and future executive leadership roles.

The Infosys Training Centre in Mysore also provides a number of extracurricular
facilities like tennis, badminton, basketball, swimming pool, gym and bowling alley. It
has an international level cricket ground approved by BCCI.
CEOs[edit]
Since its establishment in 1981 until 2014 the CEOs of Infosys were its promoters,
with N.R. Narayana Murthy leading the company in its initial 21 years. Dr. Vishal Sikka
was the first non-promoter CEO; he held the position for around 3 years.  Sikka[62][63][64]

resigned in August 2017. After his resignation, UB Pravin Rao was appointed as Interim
CEO and MD of the company.  Infosys appointed Salil Parekh as chief executive officer
[65]

(CEO) and managing director (MD) with effect from 2 January 2018. [66][67]

List of Infosys CEOs[edit]

Portrait Picture Name Period

Narayan Murthy 1981 to March 2002

Nandan Nilekani March 2002 to April 2007

Kris Gopalakrishnan April 2007 to August 2011

S. D. Shibulal August 2011 to July 2014

 Vishal Sikka August 2014 to August 2017

UB Pravin
August 2017 to December 2017[65]
Rao (interim)

Salil S. Parekh January 2018 onwards[68]

Awards and recognition[edit]

 In 2021, Infosys was positioned as a leader in the Forrester Wave Application
Modernization & Migration Services. [69]

 In 2021, Infosys was positioned as a Leader in Gartner Magic Quadrant for Data
and Analytics Services. [70]

 In 2020, Infosys was ranked No. 1 in the HFS Top 10 Agile Software Development
2020 report. [71]

 In 2020, Infosys was recognized as a leader in Retail and CPG Digital Services by
Avasant. [72][73]

 In 2019, Infosys was a winner of the United Nations Global Climate Action Award in
'Climate Neutral Now' category. [74]

 In 2019, Infosys was ranked as the 3rd Best Regarded Company in the World by
Forbes.[75]

 In 2017, HfS Research included Infosys in Winner's Circle of HfS Blueprint for
Managed Security Services, Industry 4.0 services and Utility Operations. [76][77][78]

 In 2013, Infosys was ranked 18th largest IT services provider in the world by HfS
Research.  In the same year, it was ranked 53rd in Forbes list of World's Most
[79]

Innovative Companies. [80]

 In 2012, Infosys was ranked No. 19 amongst the world's most innovative companies
by Forbes.  In the same year, Infosys was in the list of top twenty green companies
[81]

in Newsweek's Green Rankings for 2012. [82]

 In 2006, Institute of Chartered Accountants of India included Infosys into Hall of

Fame for being the winner of Best Presented Accounts for 11 consecutive years. [83]
Controversies[edit]
Settlement of tax fraud in the US[edit]
In December 2019, the Attorney General of California, Xavier Becerra announced an
$800,000 settlement against Infosys and its BPM (business process management)
subsidiary. Close to 500 Infosys employees were working in the state on Infosys-
sponsored B-1 visas instead of H-1B visas between 2006 and 2017, as per an official
post available on the website of State of California. [84][85]

This misclassification resulted in Infosys avoiding California payroll taxes such as

unemployment insurance, disability insurance, and employment training taxes. [86][87]

Accusation of visa fraud in the US[edit]

In 2011, Infosys was accused of committing visa fraud by using B-1 (visitor) visas for
work requiring H-1B (work) visas. The allegations were initially made by an American
employee of Infosys in an internal complaint. He subsequently sued the company,
claiming that he was harassed and sidelined after speaking out. Although that case was
dismissed it,  along with another similar case,
[88]
 brought the allegations to the notice
[89][90][91]

of the US authorities – and the U.S. Department of Homeland Security and a federal

grand jury started investigating. [92]

In October 2013, Infosys agreed to settle the civil suit with US authorities by paying
US$34 million.  Infosys refused to admit guilt and stressed that it only agreed to pay the
[93]

fine to avoid the nuisance of "prolonged litigation".  In its statement, the company said [94]

"As reflected in the settlement, Infosys denies and disputes any claims of systemic visa
fraud, misuse of visas for competitive advantage, or immigration abuse. Those claims
are assertions that remain unproven". [95]

Malfunctioning income tax, GST and MCA portal[edit]

From 2016 onwards, after Infosys took over the contract from Tata Consultancy
Services stakeholders complained about malfunctioning and low performance of portals
multiple times. The Income Tax portal went down on the due date of multiple tax periods
and taxpayers ended up paying late fees and penalties, and the government allowed
the extension of due dates because of this. [96][97][98][99]

Chartered accountants and Company secretaries raised issues with MCA portal on due

dates. Many companies became liable for additional fees and fines due to non-
compliance. This issue is turning opposite to Ease of doing business initiatives
of Government of India. [100][101][102]

CAs and Tax professionals raised concerns about the flawed GST portal and their

inability to rectify these issues. [103][104][105]

Government faced severe criticism from CAs, CSs and other stakeholders for its

continuous failure to take action against Infosys and alleged that public fund is being
heavily mis-utilised. [106]