Infosys: Financing an Indian Software Start-Up
Case Study Analysis
Infosys: Financing an Indian Software Start-Up
Introduction
Infosys is small software development venture which provides information technology (IT) consulting services for international clients. The company is located in Bangalore and was founded back in 1981 by a small group of skllfull entrepreneurs, with very little equity of 1000$ and without backing from a large companies.
Mr. R. Narayana Murthy is the CEO and chairman and Nandan Nilekani is the president and chief operating officer (COO), of Infosys Technologies Ltd.
Being a company grounded on a Indian soil at that tome was not an advantage for Infosys because the economic policy supported by the government prior to 1991 caused many problems for business, especially for those businesses that wanted to import goods from a foreign market. Therefore the easiest business solution for Infosys was to develop software services , since production of hardware could have been a troble because all the devices they need for the hardware development were imported from abroad. Because the domestic market held no real opportunity for the new company, Infosys focused on international markets for its software products.
Up till 1999 Narayana Murthy bought out all the shares from the remaining founders, the company has dramatically transformed its business and image and grown with over 100 employees. It faced possible bancropcy but somehow managed to survive it, took the advantage of the capital markets with one of the first market-priced IPOs and brought itself a tremendous growth in its business.
It is our vision at Infosys, to create world-class leaders who will be at the forefront of business and technology in today's competitive marketplace Challenges:
As the mission for the company was to become a globally respected firm and a leader in the Indian market, they needed to transform Infosys as a desirable place to work not only for domestic people but also for the foreigners who
Infosys: Financing an Indian Software Start-Up
Introduction
Infosys is small software development venture which provides information technology (IT) consulting services for international clients. The company is located in Bangalore and was founded back in 1981 by a small group of skllfull entrepreneurs, with very little equity of 1000$ and without backing from a large companies.
Mr. R. Narayana Murthy is the CEO and chairman and Nandan Nilekani is the president and chief operating officer (COO), of Infosys Technologies Ltd.
Being a company grounded on a Indian soil at that tome was not an advantage for Infosys because the economic policy supported by the government prior to 1991 caused many problems for business, especially for those businesses that wanted to import goods from a foreign market. Therefore the easiest business solution for Infosys was to develop software services , since production of hardware could have been a troble because all the devices they need for the hardware development were imported from abroad. Because the domestic market held no real opportunity for the new company, Infosys focused on international markets for its software products.
Up till 1999 Narayana Murthy bought out all the shares from the remaining founders, the company has dramatically transformed its business and image and grown with over 100 employees. It faced possible bancropcy but somehow managed to survive it, took the advantage of the capital markets with one of the first market-priced IPOs and brought itself a tremendous growth in its business.
It is our vision at Infosys, to create world-class leaders who will be at the forefront of business and technology in today's competitive marketplace Challenges:
As the mission for the company was to become a globally respected firm and a leader in the Indian market, they needed to transform Infosys as a desirable place to work not only for domestic people but also for the foreigners who