INFOSYS: CAN THEY MAKE IT?
Article Abstract:
Infosys, the Rs450-crore software company which is valued at over Rs3,500 crore, is planning to become a global software organisation by opening software development centres around the world. Senior managers of Infosys are on the lookout for suitable locations in Europe, the Americas, China and South- East Asia. Infosys is the first Indian Corporate trying to create a brand equity for itself outside India. It will offer comprehensive information technology (IT) consultancy to its global clients. It is planning to increase its manpower from 2,500 to 7,000 by 2003 A.D. It is readying to float a $75 million American Depository Receipt(ADR) issue. The ADR issue is aimed at increasing Infosys' global profile. This will help attract top level global clients and also create a $50 million employee stock option plan, which will help attract top level talent abroad keeping the costs down. Better global brand equity brings in more value added services like IT consultancy. Infosys' global strategy follows the global delivery model by doing 80 percent of software development work in India where it is cheapest to produce. It sells in foreign markets, especially Americas, with 75 percent of its revenue coming from them. The company restricts its exposure to businesses of various kinds and no single customer is allowed to chip in over 10 percent of its revenues. This allows Infosys to define its operations broadly and reduces risks. By limiting its exposure to Y2K projects to less than 25 percent of its total revenues, Infosys has ensured that it won't be hit when the business disappears. Infosys is also considering forming alliances with foreign business consulting firms to gain expertise in areas it had not dealt with. (tsm)
Publication Name: BusinessWorld
Subject: Business, international
ISSN:
Year: 1998
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AN ENTREPRENEURIAL EPIDEMIC - VISUALSOFT
Article Abstract:
Visual Soft started in 1995 with two non resident Indian (NRI) software specialist in US and DVS Raju in Hyderabad. The company is focusing on products at the higher end. The commercial operations of the company began only in 1996. The company has achieved a turnover of Rs9.65 crore in the first year of its operations during 1997-98. In the first quarter of 1998-99, it has posted a turnover of Rs4.01 crore and expects to touch Rs18 crore to Rs19 crore by 1998 end. In this year, the focus is on VisualShift, a Y2K solution desktop and client server applications. They expect to sell one million licences of the tool over the coming 10-12 months. (um)
Comment:
Achieves turnover of Rs9.65 crore in the first year of its operations during 1997-98
Publication Name: BusinessWorld
Subject: Business, international
ISSN:
Year: 1998
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INFOSYS REBOOTS
Article Abstract:
Infosys Technologies Limited (ITL), Bangalore, the Rs260- crore company which started succession planning in 1997 has appointed Mr Nandan Nilekani as deputy managing director. Mr Narayana Murthy will be the chairman and chief executive officer. Mr Nilekani will looking after Infosys' sales and marketing and heads the banking business unit. He is also one of the promoters of the company. Mr Murthy will now concentrate on dealing with international investors, expanding technological and physical infrastructure and growth opportunities of the company. (um)
Comment:
Appoints Nandan Nilekani as deputy managing director
Publication Name: BusinessWorld
Subject: Business, international
ISSN:
Year: 1998
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