Infosys Limited is an Indian
multinational technology company
A technology company (or tech company) is a company that focuses primarily on the manufacturing, support, research and development of—most commonly computing, telecommunication and consumer electronics–based—technology-intensive products and ...
that offers
business consulting,
information technology
Information technology (IT) is a set of related fields within information and communications technology (ICT), that encompass computer systems, software, programming languages, data processing, data and information processing, and storage. Inf ...
, and
outsourcing
Outsourcing is a business practice in which companies use external providers to carry out business processes that would otherwise be handled internally. Outsourcing sometimes involves transferring employees and assets from one firm to another ...
services. Founded in 1981 in
Pune
Pune ( ; , ISO 15919, ISO: ), previously spelled in English as Poona (List of renamed Indian cities and states#Maharashtra, the official name until 1978), is a city in the state of Maharashtra in the Deccan Plateau, Deccan plateau in Western ...
, the company is headquartered in
Bengaluru
Bengaluru, also known as Bangalore (List of renamed places in India#Karnataka, its official name until 1 November 2014), is the Capital city, capital and largest city of the southern States and union territories of India, Indian state of Kar ...
.
On 24 August 2021, Infosys became the fourth Indian company to achieve a market capitalization of billion. It is 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
The United States of America (USA), also known as the United States (U.S.) or America, is a country primarily located in North America. It is a federal republic of 50 U.S. state, states and a federal capital district, Washington, D.C. The 48 ...
and for creating malfunctioning government websites.
History
Infosys was founded by seven engineers in
Pune
Pune ( ; , ISO 15919, ISO: ), previously spelled in English as Poona (List of renamed Indian cities and states#Maharashtra, the official name until 1978), is a city in the state of Maharashtra in the Deccan Plateau, Deccan plateau in Western ...
, with an initial capital of $250. It was registered as Infosys Consultants Private Limited on 2 July 1981.
In 1983, it relocated to
Bangalore
Bengaluru, also known as Bangalore (List of renamed places in India#Karnataka, its official name until 1 November 2014), is the Capital city, capital and largest city of the southern States and union territories of India, Indian state of Kar ...
.
The company changed its name to Infosys Technologies Private Limited in April 1992 and became Infosys Technologies Limited when it became a public limited company in June 1992.
In February 1993, Infosys launched its
initial public offering
An initial public offering (IPO) or stock launch is a public offering in which shares of a company are sold to institutional investors and usually also to retail (individual) investors. An IPO is typically underwritten by one or more investm ...
(IPO) with an offer price of 95 per share, compared to a book value of 20 per share. The IPO was initially undersubscribed but was
"bailed out" by US investment bank
Morgan Stanley
Morgan Stanley is an American multinational investment bank and financial services company headquartered at 1585 Broadway in Midtown Manhattan, New York City. With offices in 42 countries and more than 80,000 employees, the firm's clients in ...
, which acquired a 13% equity stake at the offer price.
When trading began in June 1993, the share price opened at 145 per share.
Infosys shares were listed on the
Nasdaq
The Nasdaq Stock Market (; National Association of Securities Dealers Automated Quotations) is an American stock exchange based in New York City. It is the most active stock trading venue in the U.S. by volume, and ranked second on the list ...
stock exchange in 1999 as
American depositary receipts (ADRs), making it the first Indian company to be listed on Nasdaq. The share price rose to 8,100 by 1999, making it the most expensive share on the market at the time. Infosys was then among the top 20 companies by market capitalization on the Nasdaq.
[ The ADR listing was later transferred from Nasdaq to NYSE Euronext to provide European investors with better access to the company's shares.
In 2002, Infosys created a ]business process management
Business process management (BPM) is the discipline in which people use various methods to Business process discovery, discover, Business process modeling, model, Business analysis, analyze, measure, improve, optimize, and Business process auto ...
division called Progeon, with Citigroup
Citigroup Inc. or Citi (Style (visual arts), stylized as citi) is an American multinational investment banking, investment bank and financial services company based in New York City. The company was formed in 1998 by the merger of Citicorp, t ...
taking a minority stake in the venture for $20 million. In 2004, Infosys established a whole-owned consulting subsidiary called Infosys Consulting, based in Fremont, California
Fremont () is a city in Alameda County, California, United States. Located in the East Bay region of the San Francisco Bay Area, Bay Area, Fremont has a population of 230,504 as of 2020, making it the fourth List of cities and towns in the San F ...
. In 2006, Infosys bought out Citigroup's entire 23% stake in Progeon for $115 million.
In July 2010, then-British Prime Minister David Cameron
David William Donald Cameron, Baron Cameron of Chipping Norton (born 9 October 1966) is a British politician who served as Prime Minister of the United Kingdom from 2010 to 2016. Until 2015, he led the first coalition government in the UK s ...
visited Infosys headquarters in Bangalore and addressed the company's employees. In June 2011, the company was renamed Infosys Limited.
In 2012, Infosys announced the opening of a new office in Milwaukee
Milwaukee is the List of cities in Wisconsin, most populous city in the U.S. state of Wisconsin. Located on the western shore of Lake Michigan, it is the List of United States cities by population, 31st-most populous city in the United States ...
, Wisconsin, to serve Harley-Davidson
Harley-Davidson, Inc. (H-D, or simply Harley) is an American motorcycle manufacturer headquartered in Milwaukee, Wisconsin. Founded in 1903, it is one of two major American motorcycle manufacturers to survive the Great Depression along with i ...
. In 2011, Infosys hired 1,200 U.S. employees, and by 2012, it had expanded its workforce by an additional 2,000 employees.[
In July 2014, Infosys launched a product subsidiary named EdgeVerve Systems, focusing on enterprise software products for business operations, customer service, procurement, and commerce network domains. In August 2015, Infosys transferred assets of Finacle to EdgeVerve Systems.
Infosys surpassed US$10 million in annual revenue in FY 1995, US$100 million in FY 1999, US$1 billion in FY 2004, and US$10 billion in FY 2017. In FY 2023, its revenue stood at US$18 billion.
Infosys announced the launch of Aster in June 2024, an AI-powered platform designed to improve marketing efficiency through the use of artificial intelligence.
]
Services and products
Infosys offers software development, maintenance, and independent validation services across industries such as finance, insurance, manufacturing, among others. Through its subsidiary Infosys Consulting, it provides consulting services in digital experience, cloud
In meteorology, a cloud is an aerosol consisting of a visible mass of miniature liquid droplets, frozen crystals, or other particles, suspended in the atmosphere of a planetary body or similar space. Water or various other chemicals may ...
, data analytics, artificial intelligence, engineering, and sustainability. Its subsidiary Infosys BPM provides outsourcing services for business processes such as finance, procurement, customer service, and HR.
Infosys offers digital products and platforms for digital transformation, including Finacle, Panaya, Infosys Equinox, Infosys Meridian, EdgeVerve and Infosys Cortex. Finacle is a banking solution that supports financial institutions in improving their customer service capabilities. Panaya is a platform that assists organizations in accelerating application delivery and innovation. Infosys Equinox is a digital commerce platform designed for facilitating user-friendly and personalized shopping experiences. Infosys Meridian is a workplace platform for increased productivity in remote and hybrid work environments.
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
The NIFTY 50 is an Indian stock market index that represents the Capitalization-weighted index#Free-float weighting, float-weighted average of 50 of the largest Indian companies listed on the National Stock Exchange of India, National Stock E ...
index. Infosys also trades its shares through American depositary receipts (ADRs) on the New York Stock Exchange
The New York Stock Exchange (NYSE, nicknamed "The Big Board") is an American stock exchange in the Financial District, Manhattan, Financial District of Lower Manhattan in New York City. It is the List of stock exchanges, largest stock excha ...
.
Over the years, the shareholding of Infosys's promoters has steadily decreased. This trend began in June 1993, when Infosys first listed its shares. The promoter holdings further declined when Infosys became the first Indian-registered company to list Employee Stock Options Schemes and ADRs on NASDAQ
The Nasdaq Stock Market (; National Association of Securities Dealers Automated Quotations) is an American stock exchange based in New York City. It is the most active stock trading venue in the U.S. by volume, and ranked second on the list ...
on 11 March 1999.
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.
In the fiscal year 2023-2024, 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.
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. By November 2022, only administrative staff remained, handling the transfer of contracts to other contractors.
Employees
As of 31 March 2024, Infosys employed a total of 343,234 people, commonly referred to as "Infoscions," with 40.1% of them being women. Of this workforce, 302,850 are software professionals, while the remaining 40,384 are engaged in support and sales roles.[ In 2023, 85% of Infosys' employees were located in India.
]
Training centre in Mysore
As the world's largest corporate university, the Infosys Global Education Centre, located on a 337-acre campus, features 400 instructors and over 200 classrooms, adhering to international benchmarks. Established in 2002, it had trained approximately 125,000 engineering graduates by June 2015.[ The centre can accommodate and train up to 14,000 employees at any given time across various technologies.][
The Infosys Leadership Institute (ILI), located in ]Mysore
Mysore ( ), officially Mysuru (), is a city in the southern Indian state of Karnataka. It is the headquarters of Mysore district and Mysore division. As the traditional seat of the Wadiyar dynasty, the city functioned as the capital of the ...
, features 196 rooms and trains approximately 4,000 trainees annually. Its primary objective is to cultivate and develop senior leaders within Infosys, preparing them for both current and future executive roles.
Additionally, the Infosys Training Centre in Mysore offers a range of extracurricular facilities, including tennis courts, badminton and basketball courts, a swimming pool, a gym, and a bowling alley. The campus also features an international-standard cricket ground, approved by the BCCI.
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. Dr. Vishal Sikka was the first external CEO, serving for approximately three years. Sikka resigned in August 2017. Following his departure, UB Pravin Rao was appointed as Interim CEO and Managing Director of the company. Infosys appointed Salil Parekh as Chief Executive Officer (CEO) and Managing Director (MD), effective from 2 January 2018.
;List of CEOs
Controversies
Settlement of tax fraud in the US
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.
Accusation of visa fraud 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, along with another similar case, 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.
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". 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."
Malfunctioning government portals
In 2013, technical issues emerged after Infosys took over the MCA21 portal from Tata Consultancy Services. Similar problems arose in 2016 after a system migration
System migration involves moving a set of instructions or programs, e.g., PLC ( programmable logic controller) programs, from one platform to another, minimizing reengineering.
Migration of systems can also involve downtime, while the old sy ...
and version update.
In 2020, the finance ministry identified glitches in the GSTN portal, leading to a summons for Infosys executives. In 2022, chartered accountants and tax professionals raised concerns over technical issues with the GSTN portal.
In 2021, the newly launched Income Tax
An income tax is a tax imposed on individuals or entities (taxpayers) in respect of the income or profits earned by them (commonly called taxable income). Income tax generally is computed as the product of a tax rate times the taxable 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. In 2022, users continued to report malfunctions and issues on the first anniversary of the portal's launch.
See also
* List of IT consulting firms
*List of Indian IT companies
A list is a set of discrete items of information collected and set forth in some format for utility, entertainment, or other purposes. A list may be memorialized in any number of ways, including existing only in the mind of the list-maker, but ...
References
External links
*
{{DEFAULTSORT:Infosys
Infosys
Information technology consulting firms of India
International information technology consulting firms
Software companies of India
Outsourcing companies
Multinational companies headquartered in India
Technology companies established in 1981
Indian companies established in 1981
Information technology companies of Bengaluru
Outsourcing in India
BSE SENSEX
NIFTY 50
Companies listed on the New York Stock Exchange
Indian brands
1981 establishments in Karnataka
Companies listed on the National Stock Exchange of India
Companies listed on the Bombay Stock Exchange
Family-owned companies of India