INTRODUCTION "Our assets walk out of the door each evening.

We have to make sure that they come back the next morning." (Narayana Murthy, CEO Infosys). Infosys technology, a leading software company based in India, was voted as the best employer in the country in many HR surveys in the recent years. The company is well known for its employee friendly HR practices. Though Infosys has grown to become a US $ 2 billion company by the year 2006, it has still retained the culture of a small company. Infosys attracts the best talent from across the country and recruits candidates by conducting one of the toughest selection process. Infosys was one of the first companies to offer ESOPs to its employees. The company followed variable compensation structure where the employees' compensation depended on the performance of the individual, the team and the company. It also very tackles the challenges faced by the company to retain its talented workforce. At a time when organizations are debating the strategic importance of their human resources, Infosys, a consulting and software services organization, includes its human resources on its Balance Sheet to affirm their asset value1. Mr. Mohandas Pai, the Chief Financial Officer of Infosys, provides a rationale for this practice: "Investors examine financial and non-financial parameters that determine long-term success of a company. These new non-financial parameters challenge the usefulness of evaluating companies solely on traditional measures as they appear in a typical financial report. Human resources represent the collective expertise, innovation, leadership, entrepreneurial and managerial skills endowed in the employees of an organization. Our representation is based on the belief that intangible assets provide a tool to our investors for evaluating market-worthiness of Infosys."

 Vision To be a globally respected corporation that provides best-of-breed business solutions, leveraging technology, delivered by best-inclass people." Mission "To achieve our objectives in an environment

of fairness, honesty, and courtesy towards our clients, employees, vendors and society at large."

Infosys Technologies Limited

TYPE

Public

BSE

500209

NASDAQ

Infy

FOUNDED

July 2, 1981

HEAD QUARTERS -

Bangalore, India

KEY PEOPLE

N.R.Narayana Murthy (chairman) Kris Gopalakrishna (CEO) & (Director)

INDUSTRY

Software services

PRODUCTS

IT service

SERVICES

- Information Technology consulting services

& solutions
REVENUE

US$3.16 billion (2009)

NET INCOME

US$1.16 billion (2009)

EMPLOYEES

1,03,905 (2009)

WEBSITE

Infosys.com

Company Overview

Infosys Technologies Limited (Infosys), incorporated on July 2, 1981, is a global technology services firm that defines, designs and delivers information technology (IT)-enabled business solutions to its clients. The Company provides end-to-end business solutions that leverage technology for its clients, including consulting, design, development, software re -engineering, maintenance, systems integration, package evaluation, and implementation and infrastructure management services. Infosys also provides software products to the banking industry. Infosys BPO (formerly Progeon Limited) is a majority owned subsidiary. Infosys Australia, Infosys China and Infosys Consulting are the Company's wholly owned subsidiaries. In June 2006, Infosys acquired the shares in Infosys BPO held by Citicorp International Finance Corporation (CIFC). As a result, Infosys effectively holds 99.98% of the equity share capital of Infosys BPO as of March 31, 2007. The Company complements its service offerings with specialist support for clients using its domain competency group that has expertise in areas, such as securities, insurance, telecommunication, banking and cash management, supply chain management, manufacturing, retail and distribution, energy and utilities, healthcare, and travel and tourism. It also uses its software engineering group and technology lab to create customized solutions for its clients. In addition, it continually evaluates and trains its professionals in new technologies and methodologies.

HISTORY

Established in 1981, Infosys is a NASDAQ listed global consulting and IT services company with more than 105,000 employees. From a capital of US$ 250, we have grown to become a US$ 4 billion company with a market capitalization of approximately US$ 27 billion. In our journey of over 28 years, we have catalyzed some of the major changes that have led to India's emergence as the global destination for software services talent. We pioneered the Global Delivery Model and became the first IT Company from India to be listed on NASDAQ. Our employee stock options program created some of India's first salaried millionaires. Infosys Technologies Limited is a leader in software development and was co founded by N.R. Narayana Murthy and a group of seven IT professionals in the year 1981 with an investment of $1000. He emerged as the company's chairman and CEO and is regarded as a great manager because of his numerical abilities and Western style of management. It has created se veral firsts in Indian industry like being the first Indian company to be listed on NASDAQ in 1999 and the first to provide employee stock options plan (ESOP).

The company opened its first international office in USA in 1987. It became a public limited company in 1992 and offered its IPO in three of the nine Indian

exchanges in 1993. It received its ISO 2001 certification in 1993 and opened other development centers in India in 1995.

By 1995 the firm was worth $200 million, had 900 employees and annua l revenue of $20 million. It opened its first European office in United Kingdom in 1996. Infosys established its headquarters in Bangalore as there the workforces were not required to be unionized, benefits to the workforce were relatively a minor cost, and there was a huge potential for profit. The late 1990s was a time for exponential growth and the main reason for this was its offshore software development model. By 2000 its market capitalization was more than $20 billion. In 2003 it established subsidiaries in China and Australia. In 2004 it crossed $1 billion in revenue. In 2006 its revenue crossed $2 billion and it completed 25 years.

Information Technology Consulting

y The Company's IT consulting professionals assist its clients by

providing technical advice in developing and recommending appropriate IT architecture, hardware and software specifications to deliver IT solutions designed to meet specific business and compu ting objectives.
y Infosys offers IT consulting in the areas of migration planning,

institution-wide implementation and overall project management involving multiple vendors under a common architecture; IT infrastructure assessment, which includes assessing its clients' IT capabilities against existing and future business requirements and recommending appropriate technology infrastructure, and technology roadmap
y development, which allows clients to evaluate emerging technologies

and develop the standards and methodologies for applying those emerging technologies.

Key People

Nilekani, Nandan M.

52

1987 Co-Chairman of the Board

Trade Activity

Murthy, N. R. Narayana Gopalakrishnan, S.

60

1981 Non-Executive Chairman of the Board and Chief Mentor

Trade Activity Trade Activity Trade Activity

52

1987 Chief Executive Officer and Managing Director

Bal Krishnan, Vibin

42

1999 Chief Financial Officer

Shibulal, S. D.

52

1997 Chief Operating Officer, Director

Trade Activity

Parvatheesam, K.

--

2006 Secretary, Compliance Officer

Trade Activity

Pai, T. V. Mohandas

48

1994 Director and Head - Administration, Education & Research and Human Resources, Director

Trade Activity

Krishnaswamy, Dinesh

52

1996 Head - Communication Design Group, Information Systems, Quality & Productivity, Director

Trade Activity

Batni, Srinath

52

1996 Group Co Head - World-wide Customer Delivery, Director

Trade Activity

Key Competitors

y Offshore Technology services firms such as Cognizant

Technologies, Satyam Computer Services, Tata Consultancy Services and Wipro

y Consulting firms as Accenture , Cap Gemini

IT Outsourcing firms such as EDS ,CSC

Company Strategy for future

y Increase businesses from existing and new clients y Expand geographically y Continue to develop deep industry knowledge y Enhance brand visibility y Pursue alliance and strategic acquisitions y Continue to invest in infrastructure and employees

Analysis

Key challenges faced by Infosys are :

y

Rise in Wage levels on Indian IT workers.

Infy can overcome this risk by growing up the value chain so that it can afford to increase its billing rates and still add value to its customers .Second thing it can do is to move their operations to second level cities in India that have low cost of living and where wage pressure is less. One of the good steps Infy has taken to this regard was by opening its Bhubaneswar center. Its cost of living is way less than that of Bangalore. Another good example is Gandhinagar where a Patni computer was one of the first big IT companies to open its office.

y Backlash towards outsourcing in foreign countries

One way is to employ local talent.Another way can be employing virtual classroom techniques by which a person sitting in India can get US experience that he would otherwise get by being physically present in USA. Multinational companies like Accenture are doing a great job in this front and are not so much dependent on wok visas as the Indian companies like Infy.

Goals
They started off with one client and right from the beginning understood the concept of an offshore delivery model. Conceptually, they tried to leverage globalization for customized software development - producing where it is most cost-effective, and selling where it is most profitable, all without being constrained by national boundaries. Infosys believed that the key to success is to ensure that it executes our engagements well every time. We have based our whole operation on a foundation of strong value systems. We were careful never to compromise on that despite many challenges.

PRESENT GOALS OF INFOSYS

AREA OF GOVERNANCE
To define and implement a training module and create awareness about sustainability. Status-It was achieved by providing sustainability training for seniors

PRODUCT RESPONSIBILITY
Sustain customer satisfaction in the annual customer survey Status- It was achieved; the overall customer satisfaction was at 81 %

ENERGY
Monitor energy consumption to become energy efficient. Status- This was achieved by implementing new monitor mechanisms Reduce per capita energy consumption by 5 %. Status- This was partially achieved by reducing the per capita electricity consumption to 10%.

ENVIRONMENT
Plant a tree for every new employee Status- Below the target planted 16,000 trees in Mangalore.

HUMAN RIGHTS

Create a framework for employees, suppliers and vendors to be educated on human rights. Status- Below target- developed a basic training module on human rights which will be implemented in 2010.

EMPLOYEE ENGAGEMENT
Track impact of employee health related activities. Status- Target achieved by receiving feedbacks after health check ups.

SOCIETY Define and implement metrics for measurement.

Status- Achieved target by developing guidelines and dashboards.