INFOSYS

NAME : AKHIL PILLAI

CLASS: MMS HR
ROLL NO: 05
SUBJECT: ORGANIZATIONAL DEVELOPMENT

INTRODUCTION:
Infosys
Limited (formerly Infosys
Technologies
Limited)
is
an
Indian multinational corporation that provides business consulting, information
technology, software engineering and outsourcing services. It is headquartered in
Bangalore, Karnataka.
Infosys is the second-largest India-based IT services company by 2014
revenues, and the fifth largest employer of H-1B visa professionals in the United
States in FY 2013.
On 15 February 2015, its market capitalization was Rs.263,735 crores ($42.51
billion), making it India's sixth largest publicly traded company.
Infosys was co-founded in 1981 by CEO Narayan Murthy, Nandan Nilekani, N. S.
Raghavan, S. Gopalakrishnan, S. D. Shibulal, K. Dinesh and Ashok Arora after
they resigned from Patni Computer Systems.
The company was incorporated as "Infosys Consultants Pvt Ltd." with a capital of
Rs.10,000 or US$1,250.
On 15 January 2016, Infosys had 1,045 clients across 50 countries.
Infosys has a global footprint with offices and development centers across the
world.
In 2012, Infosys announced a new office in Milwaukee, Wisconsin to
service Harley-Davidson, being the 18th international office in the United
States. Infosys hired 1,200 United States employees in 2011, and expanded the
workforce by an additional 2,000 employees in 2012.

4 biggest challenges facing Narayan Murthy :

1. New IT landscape
The global IT landscape has changed significantly since he gave up executive
responsibilities. The industry was still humming along on the labour-cost arbitrage
and the belief that the shift of jobs from the West to India was both inevitable and
sustainable prevailed. Indian IT companies were exporting $22 billion worth of
products and services annually.
Industry body Nasscom estimates that this figure has more than trebled as FY13
exports touched $79 billion. But unlike in the past, when higher exports translated
to more profits, the past years growth has come at a time of corporate pain and
bloodletting. Labour arbitrage no longer exists as multinational offshore centres in
India are as big, if not bigger, than that of Indian companies.

2. Competition from Cognizant, HCL Tech

Murthy will also have to face competition from players such as Cognizant and
HCL Technologies, which were relatively modest firms, when Murthy hung up his
boots. Today, Cognizant has overtaken Infosys in terms of revenue size and HCL
Tech is leading the infrastructure-management segment, the line of business which
has shown higher growth than traditional IT services.

3. Growing client base

Infosys own growth in the past years when Murthy was not serving in an
executive role could also pose as a big challenge. Against revenue of $2.1 billion
when he quit, the company garnered $7.4 billion in FY13. The number of clients
has increased to nearly 800 from 460. The client size has also increased
substantially. While it reported 15 clients in FY13 with $100 billion or more in
individual billings, there were none in FY06.

4. Employee dissatisfaction
Murthy will have to look at a far bigger and perhaps more disgruntled
workforce that is 1.6 lakh strong, against 52,700 in FY06. He is also not very much
in touch with the youth of Infosys, as he has pointed out while announcing the
roping in of his son on the board. Addressing the key human resource issues
should be at the core of Murthys strategy, given the companys relatively high
attrition levels.

Challenges for Dr. Sikka:

The naming of Dr Sikka, a former top-notch official at German software maker
SAP, removes a lot of uncertainty at Infosys around CEO succession, which was
linked to many top-level exits over the last one year. However, analysts say Dr
Sikka's appointment is just the beginning of a long road to recovery.
Here are the key challenges Dr Sikka faces.
1) Employee morale: A services company, Infosys employs in excess of 1.5 lakh
employees, but it has been bogged down by high attrition despite two wage hikes
in last one year. Attrition at Infosys rose to 18.7 per cent in the March quarter from
16.3 per cent in the December quarter. The company's attrition rate is currently
higher than its biggest competitor TCS as well as third-ranked outsourcer Wipro.
"Management churn and offshoring polices (such as cap on onsite duration) may
have impacted employee morale. At the senior level, Infosys has lost 11 senior
management employees post Mr. Murthy's return," said Bhuvnesh Singh of
Barclays.
2) Filling the leadership vaccum: Infosys has lost several board members and
some client-facing managers. The company's global sales head, head of US sales,
BPO sales head, India head as well as one of the two presidents have quit Infosys.
"The top layer of executives are all but gone," said Ankita Somani, a research
analyst at brokerage MSFL Research.

3) Sluggish growth: Over the last year, Infosys margins grew by 200 basis points
and the company also started winning large deals because of its renewed focus on
bread and butter outsourcing deals. However, Infosys continues to lag its peers
when it comes to revenue growth. For the fiscal 2014-15, Infosys expects to grow
at 9 per cent (dollar revenue) lagging industry growth estimates of 13-15 per cent.
"While deal wins improved year-on-year, the run-rate still lags that of HCL Tech,
which won over $4 billion worth of large deal wins in the past four quarters versus
$2.25 billion at Infosys," Barclays noted.
Besides, Infosys is over-dependent on North America for revenues. Aniruddha
Bhosale, analyst with Deutsche Bank, says below-par presence and acceptance in
key growth market of continental Europe will be a major challenge for Dr Sikka.
4) Infosys may take longer-than-expected to rebound: Mr Murthy had outlined
his three-year strategy of turning Infosys into "the most desirable company". He
had also promised that in five years the company will get back to industry-leading
growth rate, which it enjoyed till 2007-08. That plan now looks in danger as Mr
Murthy is relinquishing his executive role on June 14, the day when Dr Sikka joins
Infosys board.
5) Dr Sikka's background may be a handicap: At SAP, Dr Sikka led all products
business, but Infosys is predominantly a services company. Deutsche Bank says it
is concerned about Dr Sikka's ability to run a services company. "This could also
have implications on his view of costs and hence margins," the investment bank
said.
However, in an investor conference, Dr Sikka maintained that the distinction
between products and services has become blurred. "Large machines are delivered
as services nowadays... To me, the distinction between software-led services and
product is not that much," he said.

Vishal Sikka
Vishal Sikka is an Indian American CEO and MD of Infosys.
Prior to joining Infosys, Dr. Vishal Sikka was a member of the Executive Board
of SAP AG and the Global Managing Board, leading all SAP products and
innovation globally.
In his 12 years at SAP, Dr. Sikka led SAPs portfolio including the breakthrough
in-memory platform, SAP HANA, all their applications, cloud and technology
solutions.
He is credited with accelerating SAPs development processes, transforming its
innovation culture and leading several successful product co-creation initiatives
with clients.
He is also the creator of the concept of timeless software, which represents the
renewal of products without disruption to customer environments.
Sikka left the SAP board in May 2014 for "personal reasons", and was announced
as CEO and MD of Infosys on 12 June 2014.

Eight ways in which Vishal Sikka has been changing things

at Infosys.
In his year on the job, Sikka has already been able to stabilize Infosys by building a
stronger senior management team, lowering attrition, engaging better with
customers, improving employee morale and winning more business from existing
clients, according to industry veterans, analysts and company insiders who report
to him. In this period, Infosys has also embraced disruptive (and cool) technologies
such as automation and intelligence (AI).
8. Getting people to stay
When Sikka took over, Infosys was struggling for growth and bleeding talent: In
the April-June quarter of 2014, 10,627 engineers left the company and attrition
touched around 20%. Promotions and hikes wouldnt suffice, Sikka realized.
Employees are inspired when they are part of doing something great, Sikka said
in his May interview. Even before he officially came on board, Sikka started
quizzing a few people working in the delivery side of the business if Infosys had
any interesting projects, according to an executive working in the product
engineering unit. Sikka urged employees to look at embracing some disruptive
technologies such as AI while working on some of the projects.

Crucially, he gave his employees a renewed sense of pride and direction, said
Reuner of HfS Research.
On 15 July last year, Sikka wrote an email on to all Infosys engineers to launch his
crowd sourcing initiative Murmuration, under which he asked them to share an
innovative idea on which they believed clients, should focus. To make sure it was
not just another corporate exercise, Sikka and chief operating officer U.B. Pravin
Rao have implemented 10 ideas shortlisted from the 2,700 entries in some projects.
Sikka has also made an effort to directly acknowledge good work, even when it is
done by someone beyond his direct reports. The biggest change is that anyone
who does work which stands out can expect to be acknowledged by the CEO, said
a senior Infosys executive who claims to have experienced this firsthand. This is
unheard of in a company of our scale. Infosys currently has around 180,000
employees. Abdul Razack, currently head of platforms at Infosys and one of
Sikkas former colleagues at SAP, said Sikkas ability to empathize is one
reason so many people to relate to him.
7. Turning order takers into innovative thinkers
Last August, Sikka took two dozen senior executives, including the companys 12
executive vice presidents, to Stanford for a day-long class on design thinking, a
user-centric approach of problem solving popularized by California-based
consulting firm IDEO and now followed by companies across the globefrom
SAP to Procter and Gamble Co.
Later that month, when Sikka visited Infosyss training facility in Mysore, he
asked Binod Hampapur Rangadore, executive vice-president and head (talent
fulfilment function) whether the company could start training its employees in
design thinking.
By then, another of Sikkas colleague from SAP, Sanjay Rajagopalan, had joined
Infosys. He and Rangadore started conducting workshops for faculty members on

design thinking. Meanwhile, back in Palo Alto, Sikka got two consultants, David
Kelley, founder of the Stanford D School and his brother Tom Kelley, to help the
team in Mysore.
In October, the Kelley brothers spent two weeks in the companys Mysore facility,
training future design thinking coaches at Infosys and setting up modules,
according to one executive based out of Mysore.

6. Building a strong A-team

Starting last August, Infosys has seen 16 of Sikkas former colleagues from SAP
join the company with ranks of associate vice-president and above. The best
transitions occur with a mix of internal promotions and external hires in order to
avoid an us versus them mentality from taking root, said Mike Myatt,
chairman of N2Growth, a US-based leadership consultancy. In any new CEO
transition, building bench depth/strength is critical. By embedding the hires deeperdown, it gives the new CEO visibility into the bowels of the organization where the
real transformation must occur. Its an expensive move short-term, but the ability
to quickly impact day-to-day operations will pay huge dividends over the longhaul.
5. Seeking outside help
To catch up with rivals such as Nasdaq-listed Cognizant, Sikka knew Infosys
would have to come up with a few platforms to bundle with its service offerings.
On 8 October, Sikka first discussed an open-source analytics platform in a meeting
with Navin Budhiraja, head of architecture and technology, and Razack at the
companys Palo Alto office.
Sikka reached out to his long-time friend Dina Bitton, author of TPC benchmark
(Transaction Processing Performance Council), one among the many benchmarks
for transaction processing and testing of online transaction processing capabilities,

for help. Sikka also got Erin Liman, a Palo Alto-based design thinker, to work
with Rajagopalan in curating design thinking workshops with clients, and Stanford
professor Ashish Goel in helping the company design a better approach to improve
engagement among its employees.
A significant shortcoming of Infosys in the past was being overly insular and
generally not open to good ideas and advice from industry experts outside of the
company, said Rod Bourgeois, founder of US-based DeepDive Equity Research.
To the extent that Infosys is now better incorporating relevant external inputs, I
think this is a meaningful sign of progress.
Infosys had another reason to celebrate as it finally unveiled open source data
analytics platform IIPin a little less than three months since Razack and
Budhiraja started with a team of 200 engineers to help companies make sense of
the millions of structured and unstructured data sets. Currently, Infosys has about
more than 100 ongoing projects running on IIP.
4. Shuffling managers
Despite the steady signs of progress, Sikka realized that a lot of the companys
clients were holding back on their technology spending.
Even as Sikka and Rao were deliberating on how they could improve the
companys delivery side of business, S. Ravi Kumar, the then head of cards and
insurance business, offered to help. Ravi had done a fantastic job in making the
credit card business and he is strong when it comes to execution. So we thought it
makes sense to have him head the entire delivery as it frees me to concentrate on
other works, Rao said in a March interview. Infosys also decided that Kumar
would move from New York to Bangalore by the middle of August.
Infosys undertook a management reshuffles on its delivery side under which each
of its seven service lines, including Big Data and analytics and consulting, would
work as horizontals and offer solutions to Infosyss customers across industry

segments such as banking and financial services, and energy and utilities. The
management further started to infuse coherency into different businesses by
clubbing together product units and merging consultancy practices, leaving the
core to focus on the services side of the business.
Sikka decided to bring in Infosys Swiss subsidiary, Lodestone, within the firm and
merge it with its own small consulting business, and asked Infosys veteranSanjay
Purohit to head the unit. The company also merged the three units of the research
and development arm of the firm, Infosys Labs, with its delivery-side operations
with the objective of developing intelligent platforms. Finally, it carved out
Finacle, the core banking platform business, and clubbed it with EdgeVerve, the
products, platforms and solutions unit. The products businesses will be overseen by
Michael Reh, until now boss ofFinacle and another colleague of Sikkas at SAP.
3. Direct supervision of key accounts
Sikka then got the companys top 15 accounts, including Bank of America Merrill
Lynch and Apple Inc., directly under his supervision. He assembled a team of three
senior executivesDeepak Padaki, vice-president, strategy, and chief risk
officer, Ranganath D. Mavinakere, executive vice-president and head of strategic
operations, and Ritika Suri, head of mergers and acquisitionsto oversee the
largest clients.
From having a little less than 200-odd projects in next-generation technology
areas, such as open-source and AI, in March, Infosys is currently working on 400
such projects through which it aims to generate new revenue streams for the
company.
We have about 400 projects ongoing with clients on which we are working on AI,
automation and are having very strategic design-thinking engagements with
clients. This is helping us make a breakthrough and work on new projects, said
Sikka.

2. Getting serious about M&A

Infosys has traditionally been wary of large acquisitions. That hasnt changed
under Sikka but his former SAP colleague Suri, now in charge of acquisitions at
Infosys, has a different approach. We actually listen more to our clients. Their
needs. Unlike the traditional way of, you know, engaging with investment
bankers, Suri said. Consequently, Infosys has made strategic acquisitions to help
it better cross-sell its existing service offerings.
Since the start of the calendar year, Infosys has spent $320 million in buying
automation technology provider Panaya and digital commerce firm Skava. In the
three months ended 30 June, Infosys managed to win 15 new clients using
Panayas automation technology and 14 through technology brought in by Skava.
Not all these deal wins are from new clients. The company added 79 clients during
the quarter.
Infosys has also picked up stakes in three start-ups for a total of $18.4 million.
Infosys first invested $15 million to pick a stake in a spin-off of DreamWorks
Animation earlier this year and later made an additional $2 million investment in
Air Viz Inc., which has been spun off from Carnegie Mellon University and makes
air quality sensors. In the last quarter, Infosys spent $1.4 million to pick a 5% stake
in Bangalore-based ANSR Consulting, which helps global companies set up
service and delivery centers in India.
1. Focus on IP
Sikka has tasked his former SAP colleague, Yusuf Bashir, to oversee Infosys $500
million innovation fund, under which the company plans to invest in start-ups
focused on disruptive technologies, including automation and AI, which will help
the firm fill the missing innovation strand and help renew the way it has
traditionally offered software to its customers. Sikka is betting that by using some
of these technologies, Infosys will grow at a compound annual growth rate of 13-

14% in its traditional outsourcing business, which is currently going through a

challenging period, as pricing pressure erodes profitability across the industry.
For this reason, some are already calling Sikkas first few months as the making of
a new Infosys.
A new Infosys is forming, with a lot of potential to transform itself into a player
with significantly more product IP (intellectual property) than ever before,
saidHolger Mueller, principal analyst and vice-president at Constellation Research.
However, some analysts said that the Street will only be pleased if the company
outperforms its peers consistently. To catch up with its rivals, Infosys has to
outperform them consistently. Therefore, the plaudits for the most recent financial
results will only be relevant if they can be sustained, said Reuner.

5 things to learn from Infosys Vishal Sikka on work culture

Sikka wants to make Infosys the IT bellwether again. He brought some changes to
the rule book to enhance office work culture in order to make the company look
like a new-age, youthful, agile firm, very different from the traditional Indian IT
services firms. Here we list for you some of the significant changes he has
introduced
to
the
way
Infosys
will
work
hence
forth:
1. Employees can junk formals: Do you like wearing ties. Of course No! Almost
everyone hates wearing ties. Giving relief to his employees, the Infosys CEO told
them that they could stop wearing ties. That means, they can wear jeans, t-shirts or
anything they like. The idea is to make them comfortable in the office.
2. Extending maternity leave is now simpler: Attention ladies, if you are Infosys
employees and want to extend your maternity leaves. Just drop a mail to your
manager or boss, explaining the reasons.
There is no need to give any embarrassing verbal explanations to your boss.

3. Lengthy processes get simplified: If you want to get transferred to a different

location due to some personal reasons, you need not go through any complex
procedure and give long explanations.
The company has further institutionalized family events, including carnivals for
employees'children.
4. Improving employee engagement: Infosys has asked its employees to be part
of the company's decision-making process. It started motivating its employees to
share their ideas. Sikka came up with Murmuration, aimed at crowd-sourcing
ideas from employees. Over two weeks, 26,000 employees shared more than 2,500
ideas.
Employees voted on the ideas that they felt were most relevant, and ten ideas were
shortlisted
for
execution.
5. Bridging communication gaps: Sikka started a trend to interact frequently
with his employees via blogs, town halls, InfyRadio, and InfyTV. He gives prompt
replies to all the employees on Yammer, the enterprise communication platform.
The effects are now visible! The mood in Infosys' campus is very different from
what Sikka inherited last year. Infosys' attrition has dropped to 14.2% (June
quarter)
from
23.4%
in
the
same
period
last
year.
Moreover, the company has revamped its traditional training programme and
started rolling out a new learning framework for entry-level employees as part of
Sikka's strategy to position the firm as different from its peers.
Infosys has also registered a 5% rise in its profit at Rs 3,030 crore for the first
quarter of FY16 ended June 30, 2015. The software major retained its full fiscal
year sales outlook on large outsourcing deal wins from overseas clients.