Infosys
Template:Short description Template:Use Indian English Template:Use dmy dates Template:Infobox company
Infosys Limited is an Indian multinational technology company that offers information technology, business consulting, and outsourcing services. Founded in 1981 by seven engineers, the company is headquartered in Bengaluru and considered one of the Big Six Indian IT companies.
Infosys has also attracted controversies due to allegations of visa and tax fraud in the United States and for creating malfunctioning government websites.
History
Infosys was founded by N. R. Narayana Murthy, Nandan Nilekani, Kris Gopalakrishnan, S. D. Shibulal, K. Dinesh, N. S. Raghavan, and Ashok Arora, with an initial capital of $250.<ref>Template:Cite web</ref> It was incorporated as Infosys Consultants Private Limited in Pune on 2 July 1981,<ref name="Company hyHistory of Infosys">Template:Cite web</ref> before relocating to Bangalore in 1983.<ref>Template:Cite web</ref> Arora left the company in 1989 and sold his shares to the other co-founders.<ref>Template:Cite news</ref>
In the 1980s, Infosys briefly made hardware products like electronic telex machines and keyboard concentrators.<ref>Template:Cite news</ref><ref>Template:Cite news</ref> Its core business of offshore custom software development witnessed growth after the 1991 economic liberalisation of India.<ref>Template:Cite news</ref>
In February 1993, Infosys launched its initial public offering (IPO) with an offer price of Template:INR95 per share. The IPO was initially undersubscribed but was "bailed out" by US investment bank Morgan Stanley, which acquired a 13% equity stake at the offer price.<ref name=in.com_ITL_Bio>Template:Cite web</ref> When trading began in June 1993, the share price opened at Template:INR145 per share.<ref>Template:Cite web</ref>
Infosys released its banking automation software package Bancs2000 in 1994,<ref name="finacle">Template:Cite web</ref> middleware architecture product Entark in 1995,<ref name="faces"/> and Y2K problem toolset "In2000" a year later.<ref>Template:Cite news</ref> In the mid to late 1990s, Infosys also incubated software product subsidiaries like e-fulfillment and WMS software provider Yantra, and mobile VAS developer OnMobile, which were subsequently spun off and divested.<ref name="faces">Template:Cite news</ref>
Infosys listed its American depositary receipts (ADRs) on Nasdaq in March 1999, making it the first Indian company to be listed on Nasdaq.<ref name="nasdaq"/> Infosys was then among the top 20 companies by market capitalization on the Nasdaq.<ref name="in.com_ITL_Bio"/> The ADR listing was later transferred to NYSE Euronext to provide European investors with better access to the company's shares.<ref>Template:Cite web</ref>
In 1999, Infosys rolled out Finacle, a core banking software suite developed as the successor to Bancs2000.<ref>Template:Cite news</ref><ref name="finacle"/> The same year, Infosys started its research and innovation arm called SETLabs (later renamed Infosys Labs). In 2004, SETLabs formed an intellectual property (IP) cell; Infosys was reported to be earning about 10% of its total revenue from patent pending IP assets in 2006.<ref>Template:Cite news</ref><ref>Template:Cite news</ref>
In 2002, Infosys created a business process management division called Progeon (now Infosys BPM), with Citigroup taking a minority stake in the venture for $20 million.<ref>Template:Cite news</ref> In 2004, Infosys established a wholly owned consulting subsidiary called Infosys Consulting, based in Fremont, California.<ref>Template:Cite news</ref> In 2006, Infosys bought out Citigroup's entire 23% stake in Progeon for $115 million.<ref>Template:Cite news</ref>
In 2009, Infosys set up a subsidiary, Infosys Public Services, based in Rockville, Maryland, with a focus on federal and state government projects in the US, Canada, and the UK.<ref>Template:Cite news</ref> In 2012, Infosys opened its 18th US office, in Milwaukee, primarily to serve Harley-Davidson; the company also announced having hired over 1,200 employees in the US in 2011 and an additional 2,000 employees in 2012.<ref name="Milwaukee">Template:Cite web</ref>
In July 2014, Infosys established an enterprise software products subsidiary named EdgeVerve Systems, with products in business operations, customer service, procurement, and commerce network domains.<ref>Template:Cite news</ref> In August 2015, Infosys transferred assets of Finacle to EdgeVerve Systems.<ref>Template:Cite news</ref>
In 2015, Infosys launched the $500 million Infosys Innovation Fund to invest in early-stage startups focused on emerging and deep tech,<ref>Template:Cite news</ref> including a $250 million allocation for Indian startups.<ref>Template:Cite news</ref>
In 2018, Infosys formed a Singapore-based 60:40 joint venture with Temasek Holdings known as Infosys Compaz (iCompaz), serving clients in the Southeast Asian markets.<ref>Template:Cite news</ref><ref>Template:Cite news</ref>
On 24 August 2021, Infosys became the fourth Indian company to achieve a market capitalization of Template:Currency billion.<ref>Template:Cite news</ref>
Services and products
Infosys offers software development, maintenance, and independent validation services across industries such as finance, insurance, manufacturing, among others.<ref>Template:Cite news</ref> Through its subsidiary Infosys Consulting, it provides consulting services in digital experience, cloud,<ref>Template:Cite web</ref> data analytics, artificial intelligence, engineering,<ref>Template:Cite web</ref> and sustainability.<ref>Template:Cite web</ref> Its subsidiary Infosys BPM provides outsourcing services for business processes such as finance, procurement, customer service, and HR.<ref>Template:Cite web</ref>
Infosys offers digital products and platforms for digital transformation, including digital banking software Finacle, application delivery platform Panaya, digital commerce platform Infosys Equinox, workplace platform Infosys Meridian, and customer engagement platform Infosys Cortex.<ref>Template:Cite web</ref><ref>Template:Cite web</ref> It also provides sets of services and platforms in domains such as cloud with Cobalt,<ref>Template:Cite web</ref> generative AI with Topaz,<ref>Template:Cite web</ref> and AI marketing with Aster.<ref>Template:Cite web</ref>
Acquisitions
| Name | Based in | Acquisition cost | Acquisition date | Business |
|---|---|---|---|---|
| Expert Information Services | Australia | $23 million | Dec 2003<ref>Template:Cite web</ref> | IT services |
| Gen-i Software | New Zealand | Undisclosed | Jun 2011<ref>Template:Cite news</ref> | Software consulting |
| Lodestone Holding | Switzerland | $345 million | Sep 2012<ref>Template:Cite web</ref> | Management consultancy |
| Panaya | Israel | $200 million | Mar 2015<ref>Template:Cite web</ref> | Automation technology |
| Skava (Kallidus) | United States | $120 million | Apr 2015<ref>Template:Cite web</ref> | Digital experience solutions |
| Noah Consulting | United States | $70 million | Nov 2015<ref>Template:Cite news</ref> | Information management consulting services |
| Skytree | United States | Undisclosed | Apr 2017<ref>Template:Cite web</ref> | Machine learning |
| Brilliant Basics | United Kingdom | £7.5 million | Aug 2017<ref>Template:Cite web</ref> | Product design and customer experience |
| Fluido Oy | Finland | €65 million | Oct 2018<ref>Template:Cite web</ref> | Salesforce advisor and consulting partner |
| WongDoody | United States | $75 million | Jan 2019<ref>Template:Cite web</ref> | Advertising and creative strategy services |
| Stater N.V. | Netherlands | €127.5 million | Apr 2019<ref>Template:Cite web</ref> | Mortgage services |
| Simplus | United States | $250 million | Feb 2020<ref>Template:Cite news</ref> | Salesforce consulting |
| Kaleidoscope | United States | $42 million | Sep 2020<ref>Template:Cite news</ref> | Product design and development |
| GuideVision | Czech Republic | €30 million | Sep 2020<ref>Template:Cite news</ref> | ServiceNow partner |
| Blue Acorn iCi | United States | $125 million | Oct 2020<ref>Template:Cite news</ref> | Digital transformation |
| Carter Digital | Australia | Undisclosed | Jan 2021<ref>Template:Cite news</ref> | Design agency |
| Oddity | Germany | €50 million | Mar 2022<ref>Template:Cite news</ref> | Digital marketing |
| BASE life science | Denmark | €110 million | Jul 2022<ref>Template:Cite news</ref> | Life science consulting and technology |
| InSemi | India | Template:INR280 crore | Jan 2024<ref>Template:Cite news</ref> | Semiconductor design services |
| in-tech | Germany | €450 million | Apr 2024<ref>Template:Cite news</ref> | Engineering R&D services |
| MRE Consulting | United States | $36 million | Apr 2025<ref name="q1fy26">Template:Cite news</ref> | Consulting |
| The Missing Link | Australia | A$98 million | Apr 2025<ref name="q1fy26"/> | Cybersecurity and cloud services |
Listing and shareholding pattern
In India, Infosys shares are listed on the BSE, where it is a part of the BSE SENSEX, and on the NSE, where it is included in the NIFTY 50 index.<ref>Template:Cite web</ref> Infosys also trades its shares through American depositary receipts (ADRs) on the New York Stock Exchange.<ref>Template:Cite news</ref>
Over the years, the shareholding of Infosys's promoters has steadily decreased. This trend began in June 1993, when Infosys first listed its shares on the BSE. The promoter shareholding further declined when Infosys instated employee stock option scheme in 1993 and listed ADRs on Nasdaq on 11 March 1999.<ref name="nasdaq">Template:Cite news</ref> The Life Insurance Corporation of India is the biggest shareholder in Infosys.<ref>Template:Cite news</ref>
| Shareholders | Shareholding |
|---|---|
| Promoters group | Template:014.61% |
| Foreign institutional investors (FII) | Template:032.74% |
| Domestic institutional investors (DII) | Template:037.59% |
| Public | Template:014.81% |
| Others | Template:0Template:Pad0.25% |
| Total | 100.00% |
Operations
Geographical presence
As of 31 March 2024, Infosys operates 94 sales and marketing offices and 139 development centers globally. The company's operations are spread across key regions, including India, the United States, Canada, China, Australia, Japan, the Middle East, and Europe.<ref>Template:Citation</ref>
In the fiscal year 2023-24, Infosys generated approximately 61% of its revenue from North America, 25% from Europe, 3% from India, and 11% from other regions, including the Middle East, Australia, and Japan.<ref>Template:CitationTemplate:Dead link</ref>
Infosys faced scrutiny over its continued operations in Moscow following Russia's invasion of Ukraine in February 2022. The company clarified that it had no active business with Russian firms.<ref name="autogenerated1">Template:Cite web</ref><ref>Template:Cite web</ref> By November 2022, only administrative staff remained, handling the transfer of contracts to other contractors.<ref>Template:Cite web</ref>
Training centre in Mysore
As the world's largest corporate university, the Infosys Global Education Centre, located on a 337-acre<ref>Template:Cite web</ref> campus in Mysore, features 400 instructors and over 200 classrooms.<ref name="100000T">Template:Cite news</ref> Established in 2002, it had trained approximately 125,000 engineering graduates by June 2015.<ref name="100000T" /> The centre can accommodate and train up to 14,000 employees at any given time across various technologies.<ref>Template:Cite web</ref><ref name="MysoreET" />
The Infosys Leadership Institute (ILI), located in Mysore, trains approximately 4,000 trainees annually.<ref name="MysoreET">Template:Cite news</ref> Its primary objective is to cultivate and develop senior leaders within Infosys, preparing them for both current and future executive roles.
Employees
As of 31 March 2024, Infosys employed a total of 317,240 people, commonly referred to as "Infoscions," with 39.3% of them being women.<ref name="InvestorSheet2024">Template:Cite web</ref> In 2023, 85% of Infosys' employees were located in India.
Starting mid-2015, Infosys did away with its dress code, allowing jeans and casual clothes every day. This change is noticeable because, since 2008, a formal dress code—including a tie for males twice a week—had been mandatory at the company.<ref>Template:Cite news</ref><ref>Template:Cite news</ref>
CEOs
From its establishment in 1981 until 2014, Infosys' CEOs were its founders, with N. R. Narayana Murthy leading the company for the initial 21 years. Vishal Sikka was the first external CEO, serving for approximately three years.<ref>Template:Cite web</ref> Sikka resigned in August 2017. Following his departure, UB Pravin Rao was appointed as Interim CEO and Managing Director of the company.<ref name="Vishal_resigns">Template:Cite news</ref> Infosys appointed Salil Parekh as Chief Executive Officer (CEO) and Managing Director (MD), effective from 2 January 2018.<ref name="Parekh">Template:Cite news</ref>
- List of CEOs
| Name | Period |
|---|---|
| N. R. Narayana 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 |
| U. B. Pravin Rao (interim) | August 2017 to December 2017<ref name="Vishal_resigns" /> |
| Salil Parekh | January 2018 onwards<ref name="Parekh" /> |
Controversies
Settlement of visa and tax fraud cases in the US
In 2011, Infosys was accused of visa fraud for using B-1 (visitor) visas for work that required H-1B (work) visas. The allegations originated from an internal complaint by an American employee of Infosys, who subsequently filed a lawsuit against the company, claiming harassment and marginalization after raising the issue. Although the lawsuit was dismissed,<ref>Template:Cite news</ref> along with another similar case,<ref>"Former Employee Sues Infosys" Template:Webarchive, 9 August 2012, The Wall Street Journal</ref><ref>Template:"'Infosys Slashed 80% of My PortfolioTemplate:'" Template:Webarchive, Shayan Ghosh, 14 August 2012, Deccan Herald</ref><ref>"Infosys Says Settles Whistleblower...", 14 December 2012, The Indian Express</ref> these allegations were brought to the attention of U.S. authorities, leading to investigations by the U.S. Department of Homeland Security and a federal grand jury.<ref>Template:Cite web</ref>
In October 2013, Infosys agreed to settle the civil suit with U.S. authorities by paying $34 million. While the company did not admit guilt, it stated that it settled to avoid the complications of "prolonged litigation".<ref>Template:Cite news</ref> Infosys asserted that, "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 untrue and are assertions that remain unproven."<ref>Template:Cite news</ref>
In December 2019, Infosys reached an $800,000 settlement with the State of California in a visa and tax fraud case. Between 2006 and 2017, nearly 500 Infosys employees were found to be working in the state on Infosys-sponsored B-1 visas instead of the required H-1B visas, enabling the company to avoid paying California payroll taxes, including unemployment insurance, disability insurance, and employment training taxes.<ref>Template:Cite web</ref><ref>Template:Cite web</ref><ref>Template:Cite web</ref><ref>Template:Cite news</ref>
Malfunctioning government portals
In 2013, technical issues emerged after Infosys took over the MCA21 portal from Tata Consultancy Services.<ref>Template:Cite news</ref><ref>Template:Cite web</ref> Similar problems arose in 2016 after a system migration and version update.<ref>Template:Cite news</ref><ref>Template:Cite news</ref>
In 2020, the finance ministry identified glitches in the GSTN portal, leading to a summons for Infosys executives.<ref>Template:Cite news</ref><ref>Template:Cite news</ref> In 2022, chartered accountants and tax professionals raised concerns over technical issues with the GSTN portal.<ref>Template:Cite web</ref><ref>Template:Cite web</ref>
In 2021, the newly launched Income Tax portal, developed by Infosys, encountered multiple glitches. Despite a summons for Infosys CEO Salil Parekh, the issues remained unresolved for months, forcing an extension of the tax filing deadline.<ref>Template:Cite news</ref><ref>Template:Cite news</ref> In 2022, users continued to report malfunctions and issues on the first anniversary of the portal's launch.<ref>Template:Cite news</ref><ref>Template:Cite web</ref><ref>Template:Cite web</ref>
Tracking software
It was reported in late 2013 that Infosys’ plan to install software to track the actual time staff spent on their computers caused resentment among employees.<ref>Template:Cite news 26 December 2013</ref>
See also
References
External links
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