Microsoft today said it has signed a deal with Indian outsourcer Infosys Technologies Ltd. to manage key parts of worldwide internal IT operations -- and hopefully cut IT costs.
The agreement calls for Infosys to take over responsibility for managing Microsoft's IT help desk and desk-side services operations, as well as servicing the company's applications, devices and databases in more than 100 countries.
Microsoft, not a newcomer to outsourcing, said the deal with Infosys 'is simply a consolidation of work that used to be provided by multiple vendors to a single provider, Infosys.' The statement added that 'Microsoft has had a concentrated effort to be more efficient and save money. This was a major area where we could do this.'
This Agreement represents a Service Level Agreement “SLA” or “Agreement” between Jolly Technologies Inc. (“Service Provider” and Customer Name “Customer”, together referred to as “Stakeholders”, for the. More and more IT companies are using bonds to deter freshers from jumping jobs. Satyam, Infosys and TCS are increasingly insisting on a bond from. Of my services if I am not competent enough and my bond money shall be refunded. We only facilitate an agreement with the bank and the employee.
Although such agreements often lead to layoffs and/or the transfer of employees to the outsourcer, Microsoft said that 'this new contract will not impact internal resources.'
Infosys said it is looking for the three-year agreement to provide its engineers with early access to and experience using new Microsoft tools and applications when they are rolled out internally.
'We will get the first opportunities to build competencies in newer Microsoft technologies,' said Anand Nataraj, vice president and unit head infrastructure management services at Infosys. Under the pact, Infosys will function as a prime contractor, and will be work some of Microsoft's existing service providers, said Nataraj.
Nataraj said Infosys can help Microsoft quickly reduce IT support costs by improving service management and support operations. The outsourcer plans to automate some lower level support activities, as well work to address support issues before they are elevated to an engineer and more expensive levels of service.
Infosys said the agreement will create a unified service management operation at Microsoft, and help the software giant adopt ISO 20000 IT service management standards.
Peter Bendor-Samuel, CEO of Everest Group, a Dallas-based outsourcing consulting and research group, called the deal a 'real nice win for Infosys,' that will boost the credibility of the outsourcing giant's infrastructure offerings.
Bendor-Samuel said that it is unclear how much technical advantage Infosys may get from this agreement as Microsoft shares its product development with a wide range of partners. However, he added that 'it is clear is they will get marketing advantage.'
The value of the contract wasn't disclosed though Bendor-Samuel projected its worth at more than $100 million.
Infosys timed its Microsoft announcement with the release of its latest quarterly financial figures. The company said that revenue for the quarter ended March 31 was $1.3 billion, up 15.6% from the same quarter a year ago.
Patrick Thibodeau covers SaaS and enterprise applications, outsourcing, government IT policies, data centers and IT workforce issues for Computerworld. Follow Patrick on Twitter at @DCgov, or subscribe to Patrick's RSS feed . His e-mail address is [email protected].
(Redirected from Infy)
Public | |
Traded as |
|
---|---|
Industry | IT services, IT consulting |
Founded | 7 July 1981; 38 years ago |
Founders |
|
Headquarters | , |
Worldwide | |
Key people | Nandan Nilekani (Chairman) Salil S. Parekh (MD & CEO)[1] |
Services | |
Revenue | US$12.1 billion (2019)[2] |
US$2.7 billion (2019)[2] | |
US$2.2 billion (2019)[2] | |
Total assets | US$12.2 billion (2019)[2] |
Total equity | US$9.4 billion (2019)[2] |
Number of employees | 228,123 (2019)[2] |
Divisions | |
Website | www.infosys.com |
Footnotes / references [2] |
Infosys Limited is an Indian multinational corporation that provides business consulting, information technology and outsourcing services. It has its headquarters in Bangalore, Karnataka, India.[3]
Infosys is the second-largest Indian IT company after Tata Consultancy Services by 2017 revenue and 596th largest public company in the world based on revenue.[4] On March 29, 2019, its market capitalisation was $46.52 billion.[5] The credit rating of the company is A− (rating by Standard & Poor's).[6]
- 6Employees
History[edit]
Infosys was established by seven engineers in Pune, Maharashtra, India with an initial capital of $250 in 1981.[7] It was registered as Infosys Consultants Private Limited on 2 July 1981.[8] In 1983, it relocated its office to Bangalore, Karnataka, India.
Name change: 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 later renamed to Infosys Limited in June 2011.[9]
Share listing: An initial public offer (IPO) in February 1993 with an offer price of ₹95 (equivalent to ₹510 or US$7.40 in 2018) per share against book value of ₹20 (equivalent to ₹110 or US$1.60 in 2018) per share was undersubscribed but it was 'bailed out' by US investment bank Morgan Stanley, which picked up 13% of equity at the offer price.[10] Its shares were listed in stock exchanges in June 1993 with trading opening at ₹145 (equivalent to ₹790 or US$11 in 2018) per share.[11]
Its shares were listed on NASDAQ in 1999 through ADR route. The share price surged to ₹8,100 (equivalent to ₹26,000 or US$380 in 2018) 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.[10] The ADR listing was shifted from NASDAQ to NYSE Euronext to give its European investors better access to its stock.[12]
Infosys, Bangalore
Revenue growth: Its annual revenue reached US$100 million in 1999, US$1 billion in 2004 and US$10 billion in 2017.[8]
Geographical expansion: In 2012, Infosys announced a new office in Milwaukee, Wisconsin, to serve Harley-Davidson, being the 18th international office in the United States.[13][14] Infosys hired 1,200 United States employees in 2011, and expanded the workforce by an additional 2,000 employees in 2012.[14]In April 2018 Infosys announced expanding in Indianapolis, Indiana. The development will include more than 120 acres and is expected to result in 3,000 new jobs—1,000 more than previously announced.
Product and portfolio expansion: In July 2014, Infosys started a product subsidiary called EdgeVerve Systems, focusing on enterprise software products for business operations, customer service, procurement and commerce network domains.[15] In August 2015, the Finacle Global Banking Solutions assets were officially transferred from Infosys and became part of the product company EdgeVerve Systems product portfolio.[16]
Product and portfolio expansion: In July 2014, Infosys started a product subsidiary called EdgeVerve Systems, focusing on enterprise software products for business operations, customer service, procurement and commerce network domains.[15] In August 2015, the Finacle Global Banking Solutions assets were officially transferred from Infosys and became part of the product company EdgeVerve Systems product portfolio.[16]
Products and services[edit]
Infosys provides software development, maintenance and independent validation services to companies in finance, insurance, manufacturing and other domains.[17]
One of its known products is Finacle which is a universal banking solution with various modules for retail & corporate banking.[18]
Glass building in Pune campus
Its key products and services are:
- NIA – Next Generation Integrated AI Platform (formerly known as Mana)
- Infosys Consulting – a global management consulting service
- Infosys Information Platform (IIP) – Analytics platform
- EdgeVerve Systems which includes Finacle, a global banking platform
- Panaya Cloud Suite
- Skava
Geographical presence[edit]
Main block in Chennai campus
Infosys has 82 sales and marketing offices and 123 development centres across the world as of March 31, 2018, with major presence in India, United States, China, Australia, Japan, Middle East and Europe.[19][20]
In 2019, 60%, 24% and 3% of its revenues were derived from projects in North America, Europe and India, respectively. Remaining 13% of revenues were derived from rest of the world.[21]
Acquisitions[edit]
Name of acquired company | Based in | Acquisition cost | Acquisition date | Business of acquired company |
---|---|---|---|---|
Expert Information Services | Australia | US$23 million | Dec 2003[22][23] | IT service provider |
McCamish Systems | USA | US$38 million | Dec 2009[24] | Insurance and financial services |
Portland Group | Australia | AUD 37 million | Jan 2012[25][26] | Strategic sourcing and category management |
Lodestone Holding AG | Switzerland | US$345 million | Sep 2012[27] | Management consultancy |
Panaya | Israel | US$200 million | Mar 2015[28][29] | Automation technology |
Skava | USA | US$120 million | Apr 2015[30][31] | Digital experience solutions |
Noah-Consulting | USA | US$70 million | Nov 2015[32] | Information management consulting services |
Skytree | USA | Undisclosed amount | Apr 2017[33][34] | Machine learning |
Brilliant Basics | UK | GBP 7.5 million | Aug 2017[35] | Product design and customer experience |
Fluido Oy | Finland | EUR 65 million | Oct 2018[36] | Salesforce advisor and consulting partner |
WongDoody | USA | US$75 million | Jan 2019[37] | Advertising and creative strategy services |
Stater N.V. | Netherlands | EUR 127.5 million | Apr 2019 | Mortgage services |
Listing and share holding pattern[edit]
In India, shares of Infosys are listed on the BSE where it is included in BSE SENSEX and NSE where it is included in CNX Nifty. Its shares are listed by way of American depositary receipts (ADRs) at the New York Stock Exchange.
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 on 11 March 1999.[38] The promoter holding on 31 March 2002 was 28.72%[39] and at 30 June 2017 it dropped to 12.75% as they gradually sold their shares and reduced involvement in active management of the company.[citation needed]
A building in Thiruvananthapuram campus
Shareholders (as of 30 June 2017)[40][41] | Shareholding |
---|---|
Promoters group | 012.75% |
Foreign institutional investors (FII) | 037.47% |
ADR | 016.70% |
Individual shareholders | 009.83% |
Banks, financial institutions and insurance companies | 011.24% |
Mutual funds | 008.97% |
Others | 003.04% |
Total | 100.00% |
Employees[edit]
Infosys had a total of 228,123 employees at the end of March 2019, out of which 37% were women.[21] Out of its total workforce, 79% are software professionals, 16% are working in its BPM arm and remaining 5% work for support and sales.[21] In 2016, 89% of its employees were based in India.[42]
During 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.[42]
The attrition rate of Infosys Ltd., including its subsidiaries, for financial year 2019 was 21.5%.[42]
Training centre in Mysuru[edit]
The Development Centre in Mysuru campus
As the world's largest corporate university, the Infosys global education centre in the 337 acre[43] campus has 400 instructors and 200+ classrooms,[44] with international benchmarks at its core. Established in 2002, it had trained around 1,25,000 engineering graduates by June 2015.[44] It can train 14,000 employees at a given point of time on various technologies.[45][46]
The Infosys Leadership Institute (ILI), based in Mysuru, has 96 rooms and trains about 400 Infoscions annually.[46] Its purpose is to prepare and develop the senior leaders in Infosys for current and future executive leadership roles.
The Infosys Training Centre in Mysuru also provides a number of extracurricular facilities like tennis, badminton, basketball, swimming pool and gym.
CEOs[edit]
Since its establishment in 1981 till 2014, the CEOs of Infosys were its promoters, with N.R. Narayana Murthy 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.[47][48][49] Dr Vishal Sikka resigned in August 2017. In a personal note to board colleagues,[50] Sikka cites a 'drumbeat of distractions' and 'false, baseless, malicious and increasingly personal attacks' as his reason for leaving Infosys.[51] Many sources suspect this is in reference to a long running feud with Infosys Founders over the new direction Sikka was reportedly taking Infosys.[52][53][54] After his resignation, UB Pravin Rao was appointed as Interim CEO and MD of Infosys.[55] Infosys has appointed Salil Parekh chief executive officer (CEO) and managing director (MD) of the company with effect from January 2, 2018,[1].[56]
Salil S. Parekh, current CEO & MD
Name | Period |
---|---|
Narayan Murthy | 1981 to March 2002 |
Nandan Nilekani | March 2002 to April 2007 |
S. Gopalakrishnan | April 2007 to August 2011 |
S. D. Shibulal | August 2011 to July 2014 |
Vishal Sikka | August 2014 to August 2017 |
UB Pravin Rao (interim) | August 2017 to December 2017[55] |
Salil S. Parekh | January 2018 onwards[57] |
Initiatives[edit]
Infosys Media Centre in Bangalore, India
Infosys Foundation
In 1996, Infosys established the Infosys Foundation, to support the underprivileged sections of society.[58] At the outset, the Infosys Foundation implemented many programs in Karnataka. It subsequently covered Tamil Nadu, Telangana, Andhra Pradesh, Maharashtra, Odisha, and Punjab in a phased manner. A team at the foundation identifies all the programs in the areas of healthcare, education, culture, destitute care and rural development.[59] The Infosys Foundation USA promotes science and math education in USA, with an emphasis on under-represented students.[60]
Academic Entente
Infosys' Global Academic Relations team forges Academic Entente (AcE)[clarification needed] with academic and partner institutions.[61] It explores co-creation opportunities between Infosys and academia through case studies, student trips and speaking engagements. They also collaborate on technology, emerging economies, globalization, and research. Some initiatives include research collaborations, publications, conferences and speaking sessions, campus visits and campus hiring.[62]
Infosys Labs
Infosys Labs is organized as a global network of research labs and innovation hubs.[63]
Infosys Labs collaborates with leading national and international universities such as the University of Southern California Viterbi School of Engineering,[64]University of Cambridge, Queens University of Belfast,[65]University of Illinois at Urbana–Champaign, Indian Institute of Technology Bombay, IITB-Monash Research Academy, Indraprastha Institute of Information Technology, Delhi, Indian Institute of Science, Bangalore, Purdue University,[66] Indian Institute of Information Technology, Bangalore.[67]
Infosys Prize
The Infosys Prize is an annual award given to scientists, researchers, engineers and social scientists connected to India. It is given by the Infosys Science Foundation, a non-profit trust which was set up in February 2009 by Infosys and some members of its Board. The prize is given under six categories. Each category includes a gold medallion, a citation certificate, and prize money of ₹6.5 million (US$94,000).[68][69]
Awards and recognitions[edit]
- 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.[70][71][72]
- In 2013, Infosys was ranked 18th largest IT services provider in the world by HfS Research.[73] In the same year, it was ranked 53rd in Forbes list of World's Most Innovative Companies.[74]
- In 2012, Infosys was ranked No. 19 amongst the world's most innovative companies by Forbes.[75] In the same year, Infosys was in the list of top twenty green companies in Newsweek's Green Rankings for 2012.[76]
- In 2006, Institute of Chartered Accountants of India included Infosys into Hall of Fame for being the winner of Best Presented Accounts for 11 consecutive years.[77]
Controversies[edit]
Accusation of visa fraud in the USA
In 2011, Infosys was accused of committing visa fraud by using B-1 (visitor) visas for work requiring H-1B (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,[78] it along with another similar case,[79][80][81] brought the allegations to the notice of the US authorities – and the U.S. Department of Homeland Security and a federal grand jury started investigating.[82]
In October 2013, Infosys agreed to settle the civil suit with US authorities by paying US$34 million.[83] Infosys refused to admit guilt and stressed that it only agreed to pay the fine to avoid the nuisance of 'prolonged litigation'.[84] 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'.[85]
Displacement of American workers at Southern California Edison and Disney
In 2015, the United States Department of Labor began an investigation of Infosys after claims were made that the company used workers with H-1B visas to replace workers at Disney and Southern California Edison. Florida Sen. Bill Nelson also asked the Department of Homeland Security to investigate reports of layoffs at Disney.[86] The investigation did not find any wrongdoing.[87]
See also[edit]
References[edit]
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External links[edit]
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