Case Analysis of Infosys (A): Strategic Human Resource Management.

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Unit

Case Analysis: Infosys (A): Strategic Human Resource Management. !"# $ Strategic Human Resource Management %e&ora' (illiams )aplan Uni*ersity +anuary ,, $1,

Introduction
-n August $, 1.,/, 0arayana Murt'y 1as &orn. After gra2uating, 'e too3 a 4o& in 5aris. ('ile ta3ing t'is 4o&, 'e 1as in t'e mi22le of t'e stu2ent re*olution. ('ile 1or3ing in 6rance, 'e 1as surprise2 t'at t'ey regar2e2 1ealt' creation to &e a superior 1ay to remo*e ine7uality as

compare2 to 1ealt' re2istri&ution. After finis'ing 'is 1or3 in 6rance, 'e spent t'e ne8t year 'itc' 'i3e2 'is 1ay 'ome. -n 'is 1ay 'ome, 'e 1as &riefly imprisone2 in "ulgaria o*er espionage. He also tra*ele2 t'roug' 9astern 9urope. ('ile tra*eling 'e sa1 t'e realities of communism. (it' t'is, 'e foun2 instea2 of 'appy associates an2 an a&le state, 'e foun2 repression an2 scare2 people.
:;'ese e8periences le2 'im to &ecome, in 'is 1or2s, :a socialist in my 'eart &ut a capitalist in my min2.< (%e=ong, $$/). Murt'y returne2 to In2ia in 1.>,. ('en 'e returne2, 'e spent t1o an2 a 'alf years in pu&lic region, t'en four years 1or3ing at a soft1are firm. ;'en in 1./1, along 1it' / ot'er employees, t'ey 7uit t'e soft1are firm an2 starte2 up t'eir o1n firm ? Infosys. ;'ey starte2 t'is &y &orro1ing @ #$ from t'eir spouses. (it' t'at &eing sai2, ('at is Strategic Human Resources ManagementA Accor2ing to (isegee3, :Strategic 'uman resource management is 2esigne2 to 'elp companies &est meet t'e nee2s of t'eir employees 1'ile promoting company goals. ((isegee3 , na)

The Early Years

6rom t'e early on, Murt'y an2 'is colleagues 1ante2 to create a company t'at 1as professional, create2 &y t'e professional, an2 create2 for t'e professional. ;'ey 1ante2 to &e complete opposite of t'ose firms t'at 1ere alrea2y t'ere in In2ia. ;'ere 1as a lot of t'ings going against t'e start of Infosys. It too3 a year an2 many times to go to %el'i to get permission from t'e go*ernment to import a computer. ;'en t'en anot'er year to get a telep'one line. Anot'er issue 1as t'e a&ility to tra*el a&roa2. ;'e Reser*ist "an3 of In2ia go*erne2 t'e tra*el. "y 1.B/, t'ey only 'a2 one client. ;'en in 1.B., t'e In2ia go*ernment ma2e it 'ar2 for t'em to 2o &usinesses 1it' ot'er countries, li3e t'e U.S. (it' t'is 'appening, t'e company almost 2issol*e2. Ho1e*er, Murt'y 'a2 a lot of fait' in t'e company an2 t'oug't t'at t'ey 1oul2 succee2. He c'allenge2 'is partners &y telling t'em t'at if t'ey 1ante2 to 7uit, 'e 1oul2 &uy t'eir s'ares from t'em. -ne &y one, 'is partners tol2 'im t'at if 'e 1as staying, t'ey 1ere going to stay as 1ell.

('en t'ey 2eci2e2 to 3eep t'e company going, t'ey realiCe2 t'at t'ey nee2e2 to c'ange t'ings up. In 1..1, 1'en t'ings 1ere going &a2, t'e In2ian go*ernment launc'e2 a program of economic li&eraliCation, 1'ic' stoppe2 t'e nee2 for licenses, an2 opene2 up t'e In2ian economy.
('en t'ey first forme2, Infosys *ision 1as to 'a*e an :offs'oring< aspect of t'e company. ;'at is, t'ey 1ante2 to perform 1or3 for ot'ers outsi2e of In2ia, in In2ia. :-ffs'oring implie2 t'at t'e soft1are firm rat'er t'an t'e client, 1oul2 control t'e pro4ect, a ris3 t'at clients 'a2 &een 'esitant to ta3e so far. (%e=ong, $$/)<

"y 2oing t'ings t're1 offs'oring, it 'elpe2

t'em o*ercome t'e pro&lems t'ey 'a2 1it' t'e U.S. !o*ernmentDs *isas restrictions. ('en Infosys starte2, t'ey 2i2nDt t'in3 of t'e 'ig'er en2 of I;, t'ey t'oug't of t'e lo1er en2. -*er time, t'ey starte2 c'anging, an2 starte2 t'ings of t'e 'ig'er en2, inclu2ing in t'is I; strategy as 1ell as I; 2esign. ;'is meant, t'at t'ey also nee2e2 to c'ange t'e focus on 1'o t'ey 1or3e2 t'roug'. ;'ey 1ent from ;CS an2 (ipro in In2ia or )eane an2 9%S in t'e U.S to firms t'at 1ere &igger. 98amples of t'ese are Accenture an2 I"M.

People Philosophy
('en t'ey starte2 t'e company, t'e fon2ers al1ays trie2 to ma3e sure t'at t'eir company 1as t'e &est. ;'ey 1ante2 to 'a*e t'e "est 9mployer or 9mployer of C'oice for t'ose 1'o 1ere see3ing employment. ;'ey 1ere one of t'e 'ig'er paying companies, 1it' a top of salary at 1$E 1#F 'ig'er t'an t'ose in its peer group. In time, Infosys 'as create2 a 2eep un2erstan2ing of employee relations.

Challenges
;'ey 'a2 a pro&lem 1it' employees &eing 2iscontente2. ;'ey 'a2 increase2 t'e num&ers of employees. Up until t'e early 1..$s, employees 'a2 t'e a&ility to &uy stoc3 into t'e company at a #F purc'ase price of fair mar3et *alue. ;'is cause2 a lot of t'em to gain a lot of money. ;'e ne1er employees 1ere e8pecting t'is as 1ell, &ut 1erenDt a&le to 'a*e t'e same results. ;'ey got it at B#F of t'e fair mar3et *alue.

;'ey 'a2 t1o ot'er pro&lems. -ne 1as t'ey &ecame more processe2 oriente2, an2 so t'ey lost t'e a&ility of &eing creati*e an2 tec'nical li3e t'ey 'a2 in t'e past. ;'e secon2 pro&lem 1as t'at employees felt t'e company 1as &ecoming more impersonal.

Preparing for the Future

"y 1..., Infosys 'a2 2ou&le2 in siCe in t'e time frame of e*ery $ mont's. RealiCing t'at t'eir company 1as a&out to &ecome a small large company, t'ey realiCe2 t'at t'ey nee2e2 to impro*e pro2ucti*ity, costEcompeti*eness, an2 efficiency. %oing t'is, management implemente2 some c'anges. Some of t'ese c'anges 1ere creating a portfolio of core companies an2 1'at t'ey 2i2. ;'ey also retraine2 'o1 t'e people 1ere measure2, promote2, an2 re1are2e2.

References
Infosys (A): Strategic Human Resource Management2006Harvard Business School !isegee" naWhat is Startegic Human Resourse Managment?