Infosys- India's Second Largest Software Company
Every entrepreneur will plunge into the world of entrepreneurship and business after hearing to at least one inspirational business success story. Infosys is one such successful business story in India that has inspired millions to start their own company.
Infosys is a household name in India. And among all other founders of Infosys, N.R.Narayana Murthy, remains an inspirational business role model. India’s 2nd largest software company – Infosys is a classic example of a successful business story. It is also studied as a case study for successful businesses in various business administration courses. If someone were to take pride in India abroad. Among many other kinds of stuff, the business success story of Infosys is one thing people would definitely talk about.
In 1981, Narayana Murthy wanted to start something on his own, but he had not enough money. At that point in time, Murthy was working with Patni Computers (later acquired by iGate) as a Software Programmer. Murthy was married to Sudha whom he fell in love after becoming friends over dinner through a friend while he was working with Patni Computers. Sudha Murthy, fuelled Narayana Murthy’s dream to start Infosys by lending Rs. 10,000 as an initial investment which she had saved from her earnings. For Sudha, it was very clear that her determined husband – Narayana Murthy and the team is getting ready to create a successful business story. That would set an example for many more generations to read and get inspired.
In 1981, Murthy, after convincing his colleagues who were working along with him in Patni Computers. Murthy co-founded Infosys along with his six colleagues Nandan Nilekani, N S Raghavan, S Gopalakrishnan, S D Shibulal, K Dinesh and Ashok Arora. All former employees of Patni Computers. The first office of Infosys was in Pune which was also the front office of the Murthy couple’s home. Although the registered office was Raghavan’s home.
While Murthy and colleagues ran Infosys. Sudha started to work as a systems analyst with the Walchand Group of Industries to support their household. Infosys did not have a computer till 1983, as it had to be imported from outside India. Murthy, at that time, could not afford to bring an imported option he liked. It took almost two years for Infosys to get a computer on their own. It was a Data General 32-bit MV8000. The Infosys office location was shifted to Bangalore after it got its first client. Data-Basics Corporation from the United States.
The founders lived like a family while bringing up their business baby – Infosys. While Nilekani’s wife Rohini took care of Murthy’s son, Sudha used to help Infosys by writing codes. In one of Sudha Murthy’s books, she says, Murthy remained most of the times broke and he always owed her money.”For three years, I maintained a book of Murthy’s debts to me. No, he never returned the money and I finally tore it up after our wedding. The amount was a little over Rs 4,000,” she said in her book. Here, along with an inspiring business success story, there is a hidden love story too.
The founders frequently recall during certain interviews about how rough the ride was throughout the Infosys journey until they made it very big. During those days, there was no question of luxury – no phone, no car even after 8 years of starting the company. While their classmates had already done well in their career in various companies. Despite all odds, the only thing that kept them moving was their passion to create something new and innovative. All tough times are worth going through, as those moments are worth sharing to people during the narration of their successful business story. Which would set as an example for many younger generations to come.
The first big blow to Infosys came in the year 1989. When one of their venture partners KSA-Infosys venture that controlled the US markets decided to part away from Infosys which left Infosys in a staggering situation.
At that time, S.Gopalakrishnan was the face of KSA-Infosys venture in America. After this big collapse, one of the founders Ashok Arora decided to quit selling off the shares to the remaining founders. After Ashok, every other co-founder did not what to do and decided to follow suit. ‘If you all want to leave, you can. But I am going to stick (with it) and make it. You can sell all your shares to me and I will buy you all out’ Murthy told them. Impressed and motivated with Murthy’s courage of conviction and leadership style, the other partners decided to stay. And thus began to germinate the seeds of Infosys’ enormous growth which went on to become one of the inspiring business success stories for the world to study.
It is every startup’s dream to get NASDAQ listed. Infosys is the first Indian company to be listed on NASDAQ. Even today, Infosys derives about two-thirds of its total revenues from the US markets. And is the largest publicly traded IT services exporter in India serving companies like Reebok, Visa, Boeing, Cisco Systems, Nordstrom, New York Life, GE, and Nortel predominantly in the USA?. It was the first Indian company to list on the Nasdaq stock exchange in 1999. The share price of the firm surged to Rs 8,100 by 1999, making it the costliest share of the time.
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