Infosys Limited is an
India
India, officially the Republic of India (Hindi: ), is a country in South Asia. It is the seventh-largest country by area, the second-most populous country, and the most populous democracy in the world. Bounded by the Indian Ocean on the so ...
n
multinational information technology
Information technology (IT) is the use of computers to create, process, store, retrieve, and exchange all kinds of data . and information. IT forms part of information and communications technology (ICT). An information technology system (I ...
company that provides
business consulting A business consultant (from Latin ''consultare'', "to discuss") is a professional who provides professional or expert advice or service in a particular area such as security (electronic or physical), management, accountancy, law, human resources, ma ...
,
information technology
Information technology (IT) is the use of computers to create, process, store, retrieve, and exchange all kinds of data . and information. IT forms part of information and communications technology (ICT). An information technology system (I ...
and
outsourcing
Outsourcing is an agreement in which one company hires another company to be responsible for a planned or existing activity which otherwise is or could be carried out internally, i.e. in-house, and sometimes involves transferring employees and ...
services. The company was founded in
Pune
Pune (; ; also known as Poona, (List of renamed Indian cities and states#Maharashtra, the official name from 1818 until 1978) is one of the most important industrial and educational hubs of India, with an estimated population of 7.4 million ...
and is headquartered in
Bangalore
Bangalore (), officially Bengaluru (), is the capital and largest city of the Indian state of Karnataka. It has a population of more than and a metropolitan population of around , making it the third most populous city and fifth most ...
.
Infosys is the second-largest Indian IT company, after
Tata Consultancy Services
Tata Consultancy Services (TCS) is an Indian multinational information technology (IT) services and consulting company with its headquarters in Mumbai. It is a part of the Tata Group and operates in 150 locations across 46 countries. In July ...
, by 2020 revenue figures, and the 602nd largest public company in the world, according to the
Forbes Global 2000
The ''Forbes'' Global 2000 is an annual ranking of the top 2000 public companies in the world, published by ''Forbes'' magazine. "The Global 2000" annual ranking is assembled by ''Forbes'' using a weighted assessment of four metrics: sales, profi ...
ranking.
On 24 August 2021, Infosys became the fourth Indian company to reach $100 billion in
market capitalization
Market capitalization, sometimes referred to as market cap, is the total value of a publicly traded company's outstanding common shares owned by stockholders.
Market capitalization is equal to the market price per common share multiplied by t ...
.
History
Infosys was founded by seven engineers in Pune, Maharashtra,
India
India, officially the Republic of India (Hindi: ), is a country in South Asia. It is the seventh-largest country by area, the second-most populous country, and the most populous democracy in the world. Bounded by the Indian Ocean on the so ...
. Its initial capital was $250. It was registered as Infosys Consultants Private Limited on 2 July 1981.
In 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.
An initial public offering (
IPO
An initial public offering (IPO) or stock launch is a public offering in which shares of a company are sold to institutional investors and usually also to retail (individual) investors. An IPO is typically underwritten by one or more investment ...
) was floated in February 1993 with an offer price of per share against a book value of per share. The IPO was undersubscribed but it was
"bailed out" by US investment bank
Morgan Stanley
Morgan Stanley is an American multinational investment management and financial services company headquartered at 1585 Broadway in Midtown Manhattan, New York City. With offices in more than 41 countries and more than 75,000 employees, the fir ...
, which picked up a 13% equity stake at the offer price.
Its shares were listed in June 1993 with trading opening at per share.
Infosys shares were listed on the
Nasdaq
The Nasdaq Stock Market () (National Association of Securities Dealers Automated Quotations Stock Market) is an American stock exchange based in New York City. It is the most active stock trading venue in the US by volume, and ranked second ...
stock exchange in 1999 as
American depositary receipt
An American depositary receipt (ADR, and sometimes spelled ''depository'') is a negotiable security that represents securities of a foreign company and allows that company's shares to trade in the U.S. financial markets.
Shares of many non-U.S ...
s (ADR). It became the first Indian company to be listed on Nasdaq. The share price surged to by 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 listing was shifted from Nasdaq to NYSE Euronext to give European investors better access to the company's shares.
On 28 July 2010, then-British Prime Minister
David Cameron
David William Donald Cameron (born 9 October 1966) is a British former politician who served as Prime Minister of the United Kingdom from 2010 to 2016 and Leader of the Conservative Party from 2005 to 2016. He previously served as Leader o ...
visited Infosys HQ in Bangalore and addressed Infosys employees.
![Bangalore Infosys](https://upload.wikimedia.org/wikipedia/commons/f/f4/Bangalore_Infosys_.JPG)
Its annual revenue reached US$100 million in 1999, US$1 billion in 2004 and US$10 billion in 2017.
In 2012, Infosys announced a new office in
Milwaukee
Milwaukee ( ), officially the City of Milwaukee, is both the most populous and most densely populated city in the U.S. state of Wisconsin and the county seat of Milwaukee County. With a population of 577,222 at the 2020 census, Milwaukee is ...
, Wisconsin, to serve
Harley-Davidson
Harley-Davidson, Inc. (H-D, or simply Harley) is an American motorcycle manufacturer headquartered in Milwaukee, Wisconsin, United States. Founded in 1903, it is one of two major American motorcycle manufacturers to survive the Great Depressi ...
.
Infosys hired 1,200 United States employees in 2011 and expanded the workforce by 2,000 employees in 2012.
In April 2018, Infosys announced expanding in
Indianapolis
Indianapolis (), colloquially known as Indy, is the state capital and most populous city of the U.S. state of Indiana and the seat of Marion County. According to the U.S. Census Bureau, the consolidated population of Indianapolis and Marion ...
, Indiana.
In July 2014, Infosys started a product subsidiary called
EdgeVerve Systems
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 se ...
, focusing on enterprise software products for business operations, customer service, procurement and commerce network domains. In August 2015, assets from Finacle Global Banking Solutions were transferred from Infosys, thus becoming part of the product company EdgeVerve Systems' product portfolio.
Products and services
Infosys provides software development, maintenance and independent validation services to companies in finance, insurance, manufacturing and other domains.
One of its best-known products is Finacle, a universal banking solution with various modules for retail and corporate banking.
![India Technology](https://upload.wikimedia.org/wikipedia/commons/c/cb/India_Technology.jpg)
Its key products and services are:
* NIA – Next Generation Integrated AI Platform (formerly known as Mana)
*
Infosys Consulting
Infosys Consulting is a management consulting, IT consulting practice within the larger Infosys organization which works in strategy, IT transformation, change management and business analytics. Infosys Consulting operates globally and currently ha ...
– a global management consulting service
*
Cloud
In meteorology, a cloud is an aerosol consisting of a visible mass of miniature liquid droplets, frozen crystals, or other particles suspended in the atmosphere of a planetary body or similar space. Water or various other chemicals may co ...
-based enterprise transformation services
* Infosys Information Platform (IIP), an analytics platform
* EdgeVerve Systems, which includes Finacle, a global banking platform
*
Panaya
Panaya a global technology company based in Hod Hasharon, Israel. The company is a subsidiary of Infosys, and has offices in North America, Europe and Japan.https://www.duns100.co.il/en/Panaya Panaya, Duns 100International 2021, Dun&Bradstreet I ...
Cloud Suite
* Skava (now Infosys Equinox)
*Engineering Services
*
Digital Marketing
Digital marketing is the component of marketing that uses the Internet and online based digital technologies such as desktop computers, mobile phones and other digital media and platforms to promote products and services. Its development duri ...
Geographical presence
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.
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.
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, 2022; the only people working there were administrative staff helping with transferring the existing contracts to other contractors.
Acquisitions
Listing and shareholding pattern
![Infosys Mcity, Building number 5](https://upload.wikimedia.org/wikipedia/commons/2/2b/Infosys_Mcity%2C_Building_number_5.jpg)
In India, shares of Infosys are listed on the
BSE
BSE may refer to:
Medicine
* Bovine spongiform encephalopathy, also known as mad cow disease, a neurodegenerative disease of cattle
* Breast self-examination
Stock exchanges
* Bahrain Stock Exchange, Bahrain
* Baku Stock Exchange, Azerbaijan
* B ...
where it is a part of the
BSE SENSEX
The BSE SENSEX (also known as the S&P Bombay Stock Exchange Sensitive Index or simply SENSEX) is a free-float market-weighted stock market index of 30 well-established and financially sound companies listed on the Bombay Stock Exchange. The 30 ...
and the
NSE where it is a
NIFTY 50
The NIFTY 50 is a benchmark Indian stock market index
In finance, a stock index, or stock market index, is an index that measures a stock market, or a subset of the stock market, that helps investors compare current stock price levels ...
Constituent. Its shares are listed by way of
American depositary receipt
An American depositary receipt (ADR, and sometimes spelled ''depository'') is a negotiable security that represents securities of a foreign company and allows that company's shares to trade in the U.S. financial markets.
Shares of many non-U.S ...
s (ADRs) at the
New York Stock Exchange
The New York Stock Exchange (NYSE, nicknamed "The Big Board") is an American stock exchange in the Financial District of Lower Manhattan in New York City. It is by far the world's largest stock exchange by market capitalization of its listed c ...
.
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
The Nasdaq Stock Market () (National Association of Securities Dealers Automated Quotations Stock Market) is an American stock exchange based in New York City. It is the most active stock trading venue in the US by volume, and ranked second ...
on 11 March 1999. As of 29 July 2021, the promoter holding was 12.95%, foreign institutional investors (FIIs) hold 33.39%, and domestic institutional investors (DIIs) hold 21.98%.
Operations
Employees
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 professionals and remaining 13,796 work for support and sales.
In 2016, 89% of its employees were based in India.
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.
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
![Mysore India Infosys](https://upload.wikimedia.org/wikipedia/commons/e/e8/Mysore_India_Infosys.JPG)
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 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 various technologies.
The Infosys Leadership Institute (ILI), based in
Mysore
Mysore (), officially Mysuru (), is a city in the southern part of the state of Karnataka, India. Mysore city is geographically located between 12° 18′ 26″ north latitude and 76° 38′ 59″ east longitude. It is located at an altitude of ...
, has 196 rooms and trains about 4,000 trainees annually.
Its purpose is to prepare and develop the senior leaders in 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
The Board of Control for Cricket in India (BCCI) is the national governing body for cricket in India. Its headquarters are situated at Cricket centre, Wankhede Stadium in Mumbai. The BCCI is the richest governing body of cricket in the worl ...
.
CEOs
Since its establishment in 1981 until 2014 the CEOs of Infosys were its promoters, with
N.R. Narayana Murthy
Nāgavārā Rāmarāo Nārāyana Mūrthy (born 21 August 1946) is an Indian billionaire businessman. He is the founder of Infosys, and has been the chairman, chief executive officer (CEO), president, and chief mentor of the company before ret ...
leading the company in its initial 21 years. Dr. Vishal Sikka was the first non-promoter CEO of Infosys who worked for around 3 years. Dr. Vishal Sikka resigned in August 2017. After his resignation, UB Pravin Rao was appointed as Interim CEO and MD of Infosys.
Infosys appointed
Salil Parekh
Salil Parekh is the current chief executive officer and managing director of Infosys. Parekh took over from interim CEO U B Pravin Rao on 2 January 2018.
Early life and education
He is a graduate from the Indian Institute of Technology, Bom ...
as chief executive officer (CEO) and managing director (MD) of the company with effect from 2 January 2018.
List of Infosys CEOs
Awards and recognition
* In 2021, Infosys was positioned as a leader in the Forrester Wave Application Modernization & Migration Services.
*In 2021, Infosys was positioned as a Leader in Gartner Magic Quadrant for Data and Analytics Services.
*In 2020, Infosys was ranked No. 1 in the HFS Top 10 Agile Software Development 2020 report.
* In 2020, Infosys was recognized as a leader in Retail and CPG Digital Services by Avasant.
* In 2019, Infosys was a winner of the United Nations Global Climate Action Award in 'Climate Neutral Now' category.
*In 2019, Infosys was ranked as the 3rd Best Regarded Company in the World by Forbes.
* In 2017, HfS Research included Infosys in Winner's Circle of HfS Blueprint for Managed Security Services, Industry 4.0 services and Utility Operations.
* 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 Innovative Companies.
* In 2012, Infosys was ranked amongst the world's most innovative companies by ''
Forbes
''Forbes'' () is an American business magazine owned by Integrated Whale Media Investments and the Forbes family. Published eight times a year, it features articles on finance, industry, investing, and marketing topics. ''Forbes'' also re ...
''. In the same year, Infosys was in the list of top twenty green companies in ''
Newsweek
''Newsweek'' is an American weekly online news magazine co-owned 50 percent each by Dev Pragad, its president and CEO, and Johnathan Davis (businessman), Johnathan Davis, who has no operational role at ''Newsweek''. Founded as a weekly print m ...
'' Green Rankings for 2012.
* In 2006,
Institute of Chartered Accountants of India
The Institute of Chartered Accountants of India (ICAI) is India's largest professional accounting body under the administrative control of Ministry of Corporate Affairs, Government of India. It was established on 1 July 1949 as a statutory bod ...
included Infosys into Hall of Fame for being the winner of Best Presented Accounts for 11 consecutive years.
Controversies
Settlement of tax fraud in the US
In December 2019, the Attorney General of California,
Xavier Becerra
Xavier Becerra ( ; ; born January 26, 1958) is an American lawyer and politician serving as the 25th United States secretary of health and human services since March 2021. Becerra previously served as the attorney general of California from Jan ...
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.
This misclassification resulted in Infosys avoiding California payroll taxes such as unemployment insurance, disability insurance, and employment training taxes.
Accusation of visa fraud in the US
In 2011, Infosys was accused of committing
visa fraud
Visa fraud has different criteria in various parts of the world but the commonly accepted points are the sale, provision, or transfer of otherwise legitimate visas, misrepresentation of reasons for traveling and forgery or alteration of a visa.
T ...
by using
B-1 (visitor) visas for work requiring
H-1B
The H-1B is a visa in the United States under the Immigration and Nationality Act, section 101(a)(15)(H) that allows U.S. employers to temporarily employ foreign workers in specialty occupations. A specialty occupation requires the application of ...
(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, brought the allegations to the notice of the US authorities – and the
U.S. Department of Homeland Security
The United States Department of Homeland Security (DHS) is the U.S. federal executive department responsible for public security, roughly comparable to the interior or home ministries of other countries. Its stated missions involve anti-terr ...
and a
federal grand jury
Grand juries in the United States are groups of citizens empowered by United States federal or state law to conduct legal proceedings, chiefly investigating potential criminal conduct and determining whether criminal charges should be brought. T ...
started investigating.
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 fine to avoid the nuisance of "prolonged litigation". In its statement, the company said "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".
Allegations of financial irregularities
In 2019, whistle blowers alleged irregularities in the company's financial accounting. Internal investigations conducted by the company concluded that the allegations were without merit. External auditors said that Infosys' approach to revenue recognition was in line with IAS 34 regulations.
Malfunctioning income tax, GST and MCA portal
From 2016 onwards, after Infosys took over the contract from
Tata Consultancy Services
Tata Consultancy Services (TCS) is an Indian multinational information technology (IT) services and consulting company with its headquarters in Mumbai. It is a part of the Tata Group and operates in 150 locations across 46 countries. In July ...
stakeholders complained about malfunctioning and low performance of portals multiple times. The
Income Tax
An income tax is a tax imposed on individuals or entities (taxpayers) in respect of the income or profits earned by them (commonly called taxable income). Income tax generally is computed as the product of a tax rate times the taxable 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.
Chartered accountants and
Company
A company, abbreviated as co., is a Legal personality, legal entity representing an association of people, whether Natural person, natural, Legal person, legal or a mixture of both, with a specific objective. Company members share a common p ...
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
The ease of doing business index was an index created jointly by Simeon Djankov, Michael Klein, and Caralee McLiesh, three leading economists at the World Bank Group. The academic research for the report was done jointly with professors Edward Gl ...
initiatives of
Government of India
The Government of India (ISO: ; often abbreviated as GoI), known as the Union Government or Central Government but often simply as the Centre, is the national government of the Republic of India, a federal democracy located in South Asia, c ...
.
CAs
Cas may refer to:
* Caș, a type of cheese made in Romania
* ' (1886–) Czech magazine associated with Tomáš Garrigue Masaryk
* '' Čas'' (19 April 1945–February 1948), the official, daily newspaper of the Democratic Party of Slovakia
* ''CA ...
and
Tax professional A tax advisor or tax consultant is a person with advanced training and knowledge of tax law. The services of a tax advisor are usually retained in order to minimize taxation while remaining compliant with the law in complicated financial situations. ...
s raised concerns about the flawed
GST GST may refer to:
Taxes
* General sales tax
* Goods and Services Tax, the name for the value-added tax in several jurisdictions:
** Goods and services tax (Australia)
** Goods and Services Tax (Canada)
** Goods and Services Tax (Hong Kong)
**G ...
portal and their inability to rectify these issues.
Government faced severe criticism from
CAs
Cas may refer to:
* Caș, a type of cheese made in Romania
* ' (1886–) Czech magazine associated with Tomáš Garrigue Masaryk
* '' Čas'' (19 April 1945–February 1948), the official, daily newspaper of the Democratic Party of Slovakia
* ''CA ...
,
CSs
Cascading Style Sheets (CSS) is a style sheet language used for describing the presentation of a document written in a markup language such as HTML or XML (including XML dialects such as SVG, MathML or XHTML). CSS is a cornerstone techno ...
and other stakeholders for its continuous failure to take action against Infosys and alleged that public fund is being heavily mis-utilised.
See also
*
List of IT consulting firms
The following is a list of the largest notable information technology consulting firms in the world, along with their corporate headquarters location and the total number of consultants they have. Many of these serve primarily as third-party consu ...
*
List of Indian IT companies
This is a list of notable companies in the information technology sector based in India. Top Indian companies are listed in descending order of their market capitalization, and other companies are listed alphabetically, grouped by the citie ...
*
List of acquisitions by Infosys BPM Limited
References
External links
*
{{DEFAULTSORT:Infosys
Information technology consulting firms of India
International information technology consulting firms
Software companies of India
Outsourcing companies
Multinational companies headquartered in India
Technology companies established in 1981
Indian companies established in 1981
Information technology companies of Bangalore
Outsourcing in India
BSE SENSEX
NIFTY 50
Companies listed on the New York Stock Exchange
Indian brands
1981 establishments in Karnataka
Companies listed on the National Stock Exchange of India
Companies listed on the Bombay Stock Exchange