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.[5] It was incorporated as Infosys Consultants Private Limited in Pune on 2 July 1981,[6] before relocating to Bangalore in 1983.[7] Arora left the company in 1989 and sold his shares to the other co-founders.[8]
In the 1980s, Infosys briefly made hardware products like electronic telex machines and keyboard concentrators.[9][10] Its core business of offshore custom software development witnessed growth after the 1991 economic liberalisation of India.[11]
In February 1993, Infosys launched its initial public offering (IPO) with an offer price of ₹95 per share. The IPO was initially undersubscribed which led American investment bank Morgan Stanley to price stabilize the IPO by acquiring a 13% equity stake in INFY.[12] The share price eventually opened at ₹145 per share in June 1993.[13]
Infosys released its banking automation software package Bancs2000 in 1994,[14] middleware architecture product Entark in 1995, and Y2K problem toolset "In2000" a year later.[15] 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.[16]
Infosys listed its American depositary receipts (ADRs) on Nasdaq in March 1999, making it the first Indian company to be listed on Nasdaq. Infosys was then among the top 20 companies by market capitalization on the Nasdaq.[12] The ADR listing was later transferred to NYSE Euronext to provide European investors with better access to the company's shares.[17]
In 1999, Infosys rolled out Finacle, a core banking software suite developed as the successor to Bancs2000.[18][14] 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.[19][20]
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.[21] In 2004, Infosys established a wholly owned consulting subsidiary called Infosys Consulting, based in Fremont, California.[22] In 2006, Infosys bought out Citigroup's entire 23% stake in Progeon for $115 million.[23]
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.[24] 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.[25]
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.[26] In August 2015, Infosys transferred assets of Finacle to EdgeVerve Systems.[27]
In 2015, Infosys launched the $500 million Infosys Innovation Fund to invest in early-stage startups focused on emerging and deep tech,[28] including a $250 million allocation for Indian startups.[29]
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.[30][31]
On 24 August 2021, Infosys became the fourth Indian company to achieve a market capitalization of US$100 billion.[32]
Services and products
Infosys offers software development, maintenance, and independent validation services across industries such as finance, insurance, manufacturing, among others.[33] Through its subsidiary Infosys Consulting, it provides consulting services in digital experience, cloud,[34] data analytics, artificial intelligence, engineering,[35] and sustainability.[36] Its subsidiary Infosys BPM provides outsourcing services for business processes such as finance, procurement, customer service, and HR.[37]
Infosys offers digital products and platforms for digital transformation, including digital banking software Finacle, application delivery platform Panaya
Acquisitions
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.[64] Infosys also trades its shares through American depositary receipts (ADRs) on the New York Stock Exchange.[65]
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.[66] The Life Insurance Corporation of India is the biggest shareholder in Infosys.[67]
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.[69]
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.[70]
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.[71][72] By November 2022, only administrative staff remained, handling the transfer of contracts to other contractors.
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,[84] along with another similar case,[85][86][87] 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.[88]
See also
- List of IT consulting firms
- List of Indian IT companies
External links
References
- Not Just Narayana Murthy, Here's The Untold Story Of Infosys' Six Other Co-Founders IndiaTimes, 2023-10-12, retrieved 12 October 2023^
- Infosys appoints Salil S. Parekh as CEO and Managing Director The Economic Times, retrieved 2 December 2015^
- Infosys adds 5000 employees in December quarter,