Organizational Structure of Infosys

Project Report
Submitted to Management Department, ITM University, Gwalior
For the Fulfilment of 1st Trimester

Submitted By:-
Khushboo
Devina
Isha
Neha

Institute:
Management Department
ITM University
 ACKNOWLEDGEMENT

In this project we have made an honest and

dedicated attempt to make the research material as
authentic as it could and we earnestly hope that it
provides useful and workable information and
knowledge to any person reading it. During this
small time frame of two months in which the project
reached its completion, there were a few people
whom we would like to make a mention of and
without whose help the project would have never
seen the light of the day. We also thank to our guide
Dr. Yogesh Upadhya for his timely response which
immensely helped in giving the project the initial
direction it needed.

Date-………………………….
Place-…………………………
 TABLE OF CONTENTS

1) Executive Summary
2) Introduction Of company
3) VISION
4) MISSION
5) ORGANIZATION STRUCTURE
6) ORGANIZATION STRATEGY
7) PEER COMPARISON
8) BUISNESS PERFORMANCE
9) SWOT ANALYSIS
10) REFRENCES
SUMMARY

 Infosys is one of the fastest growing and most admired companies in

India, yet it earns98.1% of its revenues outside of India.1 the
Company has relied on overseas business since it started in 1981
with seven engineers and Rs. 10,000. Infosys faced significant
barriers because it operated in a bureaucratic country that was closed
to outside investment. In addition, entrepreneurship was unheard of
in India where most companies were large, family-owned
conglomerates. Despite these challenges, Infosys saw an opportunity
to offer low-cost technology services and was able to exploit value
chain shifts in foreign markets while capitalizing on the shifts in
government regulations at home. It became the first Indian company
listed on the NASDAQ in 1999 and today has over 1, 41,822
employees and now having worth of Rs 34,517 crore with in a
time duration of 30 yrs.
Infosys was able to capitalize on industry trends and on the
changing regulatory environment to become one of the most
successful companies in India. It was not clear when the Indian
government would begin making laws that favored businesses, but
Infosys was prepared when the time finally came. Infosys was not
able to perfectly predict the explosion in outsourcing technology, but
it was ready to take advantage of the opportunity when it came.
Infosys’ success is not only a function of change in the political
sphere and technology industry, though. The company worked hard
to develop an organization that adhered to high standards of quality,
that put its customers first, and that provided an excellent work
 environment for its employees. According to one of its founders,
“Each time we encountered a fundamental challenge, we viewed it
as an opportunity to transform the company. We know that the future
will pose new challenges. We don’t know which capabilities we
might need. But, we are confident that we will be able to develop
these capabilities and meet these challenges.”

INTRODUCTION

Infosys was founded on 2 July 1981with the capital of Rs. 10,000/ only by seven
entrepreneurs:

1) N. R. Narayan Murthy
2) Nandan Nilekani
3) Kris Gopalakrishnan
4) S. D. Shibulal
5) K. Dinesh
6) Ashok Arora
7) N. S. Raghavan officially being the first employee of the company

Infosys Limited, formerly known as Infosys Technologies Limited.

Infosys is a global technology Services Company headquartered in
Bangalore. It is the second largest IT exporter in India with 1, 41,822
employees as of September 2011
The chances of success were very low for this company that was started
by a small group of entrepreneurs with no connections to government
officials and very little money in socialist India. Yet these entrepreneurs
were confident that they could survive in the hostile environment and
were determined to create a company that would compete with the best
US and European companies. In order to compete with the best, the
founders of Infosys realized that they would need to differentiate their
company from other Indian companies. Infosys voluntarily adopted
stringent accounting principles such as the US GAAP while most Indian
companies used opaque accounting practices.3 (Starting in 2003, Infosys
reported financial performance in compliance with accounting principles
in 8 countries: Australia, Canada, France, Germany, Japan, UK, US, and
India.4) It distributed ownership of the company among its employees
while most Indian companies were controlled by a few powerful
families. In addition, it gave employees benefit such as stock option
plans, a health club

VISION of INFOSYS
“ Be globally respected corporation”

Mission of Infosys is to:

"To achieve the objectives in an environment of fairness, honesty, and
courtesy towards our clients, employees, vendors and society at large."

ORGANIZATIONAL STRUCTURE

Organizational structure is the formal

arrangements of jobs within an organization
A structure depends entirely on the organization's objectives
and the strategy chosen to achieve them. In a centralized
structure, the decision making power is concentrated in the
top layer of the management and tight control is exercised
over departments and divisions. In a decentralized structure,
the decision making power is distributed and the departments
and divisions have varying degrees of autonomy. An
organizational chart illustrates the organizational structure.

Why Have a Structure

• All businesses have to organise what they do
• A clear structure makes it easier to see which part of the business
does what
• There are many ways to structure a business

INFOSYS IN BEGINNING
• Infosys was a start-up founded by 7 individuals.
• Early days were a constant struggle
• Dynamic Environment.
• Companies focus was on delivering a single product based on
single technology in a single marketplace.
Low degree of Formalization, low complexity and high
centralization

Period from 1989 – 2002

• In 1989, company lost some key accounts.
• Drastic change in the overall strategy.
• The period after liberalization led to massive growth.
• Started catering to different market segments and different
clients.
• Company had to adhere to a new set of guidelines and streamline
process due to the IPO in 1992.
• The company structure was split up into functional units.
• Project Matrix Structure was employed within the production
unit.
• Characterized by increasing complexity, moderate formalization
and moderate degree of centralization.

2003 ONWARD……..
O Company had become too big to carry on without modifying the
existing structure.
O Concept of decentralization was brought in.
O Company divided into IBU’s. Each IBU concentrated on a
particular sector.
O Made the company more customers focused. A Gamma B
transformation.
O Managers of each IBU were empowered to take decisions to
further the IBU’s prospects.
O Role Enlargement and Role Specialization.
O Decentralized system with an ability to take quick.
O Crucial as a result of the dynamic world order after the Sept 11
attacks and Asian financial crisis.
O Within each IBU the project matrix structure was carried forward.
O In 2007, the IBU concept was further refined to take into account
geographic growth opportunities.
O The 2007 reorganization was also for role enlargement of the
second line of business leaders.
 CHAIRMAN AND DIRECTORS
O N. R. Narayan Murthy appointed Chairman Emeritus.
O Mr. K. V. Kamath named as the Chairman of the Board.
O Mr. S. Gopalakrishnan named as the Co-Chairman of the Board.
O Mr. S. D. Shibulal named as the Chief Executive Officer and
Managing Director.

ORGANIZATION CHART
CEO S. Shibulal
Director
Sridar Iyengar
Director
Marti Subrahmanyam
Director
R Seshasayee
Director
Ann Fudge
Director
Jeffrey Lehman
Director
David Boyles
Director
Omkar Goswami
Lead Director
Deepak Satwalekar
Chairman of the Board (effec...
K. V. Kamath
Co-Chairman of the Board (ef...
S. Gopalakrishnan
Chairman Emeritus (effective...
Narayana Murthy

Infosys BPO
SS
CFO
Vibin Balakrishnan
Global Immigration
VN
Legal
SMK
Communication, Information &...
DK
Delivery Excellence
SB
Human Resources
NG
Senior Vice President
BS
Banking & Capital Markets
AV
Quality, Tools & Software re...
SK
Planning & Business Assurance
SP
Infosys Labs
SG

COO, Infosys BPO

RI
Risk Management
MDR
Secretary & Compliance
PK
Systems Integration
VB
Communication Design Group
SM
Computers & Communications
MKK

Infosys Consulting
SP

Infosys Consulting
RJ
Finacle
HM
Infosys Leadership Institute
MB
New Markets & Services
DVG
Australia & New Zealand
JK
Energy, Utilities & Services
PT
India Business
BHR
Insurance, Healthcare & Life...
EP
Administration,Infrastructure...
RKU
Enterprise Solutions
CK
Retail, Consumer Goods
PR
Testing Solutions
MT
Education & Research
SM
Infrastructure Management
AN
Information Systems

N R Narayan Murthy:-

Nagavara Ramarao Narayan Murthy (Kannada nāgavāra rāma-rāya

nārāyaṇa mūrti), better known as N. R. Narayan Murthy, is an Indian
industrialist and software engineer. He and six other engineers founded
Infosys in 1981. Mr. Murthy served as CEO from 1981 to 2002.
From2002 to 2011, he served as Chairman. In 2011, he became
Chairman Emeritus.
ORGANIZATION STRATEGY
 Infosys has adopted a client-focused strategy to achieve growth
 Company has an image of quality driven model rather than
cost-differentiating model
 Increase business from existing and new clients.
 Expand geographically
 It has added new service offerings, such as consulting, business
process management, systems integration and infrastructure
management, which are major contributors to its growth.
 Develop deep industry knowledge Enhance brand visibility
Pursue alliances and strategic acquisitions

PEER COMPATITORS OF INFOSYS

1) TCS
2) WIPRO
3) HCL TECH
Market Cap. Sales Net Profit Total Assets
(Rs . Cr) Turnover

TCS 216,948.16 29,275.41 7,569.99 19,620.61

INFOSYS 162,878.45 25,385.00 6,443.00 24,501.00

WIPRO 91,415.07 26,340.70 4,843.70 26,065.00

HCL TECH 29,669.10 6,794.48 1,198.28 6,889.31

1
2
3
4

NET PROFIT
1) TCS 2)INFOSYS 3) WIPRO 4) HCL TECH

TOTAL ASSETS
) TCS 2)INFOSYS 3) WIPRO 4) HCL TECH
 1
2
3
4

SALES TURNOVER
) TCS 2)INFOSYS 3) WIPRO 4) HCL TECH

Infosys Technologies – Business Performance

GROSS PROFIT MARGIN

Gross profit margin is the difference between sales
and the cost of goods sold divided by revenue. It
expresses the relationship between gross profit (sales -
cost of goods sold) and sales revenue.

INFY Gross Profit Margin Range, Past 5 Years

Minimum 38.69% Jun 2007

Maximum 43.55% Dec 2008

INFY Gross Profit

Sep 2011 41.29%
Margin

REVENUE BY INDUSTRY
 Balance sheet analysis
Mar '11 Mar '10 Mar '09 Mar '08

Total Share Capital 287.00 287.00 286.00 286.00

Equity Share Capital 287.00 287.00 286.00 286.00

 Reserves 24,214.00 21,749.00 17,523.00 13,204.00

Networth 24,501.00 22,036.00 17,809.00 13,490.00

Total Liabilities 24,501.00 22,036.00 17,809.00 13,490.00

Gross Block 6,934.00 6,357.00 5,986.00 4,508.00

Less: Accum.
2,878.00 2,578.00 2,187.00 1,837.00
Depreciation

Net Block 4,056.00 3,779.00 3,799.00 2,671.00

Capital Work in Progress 499.00 409.00 615.00 1,260.00

Investments 1,325.00 4,636.00 1,005.00 964.00

Sundry Debtors 4,212.00 3,244.00 3,390.00 3,093.00

Cash and Bank Balance 641.00 929.00 805.00 657.00

Total Current Assets 4,853.00 4,173.00 4,195.00 3,750.00

Loans and Advances 5,273.00 4,201.00 3,303.00 2,804.00

 Fixed Deposits 13,024.00 8,868.00 8,234.00 5,772.00

Total CA, Loans &

23,150.00 17,242.00 15,732.00 12,326.00
Advances

Current Liabilities 2,056.00 1,995.00 1,544.00 1,483.00

Provisions 2,473.00 2,035.00 1,798.00 2,248.00

Total CL & Provisions 4,529.00 4,030.00 3,342.00 3,731.00

Net Current Assets 18,621.00 13,212.00 12,390.00 8,595.00

Total Assets 24,501.00 22,036.00 17,809.00 13,490.00

Contingent Liabilities 1,013.00 295.00 347.00 603.00

Book Value (Rs) 426.73 384.02 310.90 235.84 195.41

COMPARISON OF YEARLY RESULTS OF INFOSYS

Mar '11 Mar '10 Mar '09 Mar '08 Mar '07

Sales Turnover 25,385.00 21,140.00 20,264.00 15,648.00 13,149.00

Other Income 1,147.00 910.00 502.00 683.00 375.00

Total Income 26,532.00 22,050.00 20,766.00 16,331.00 13,524.00

 Total Expenses 16,971.00 13,780.00 13,358.00 10,685.00 8,926.00

Operating Profit 8,414.00 7,360.00 6,906.00 4,963.00 4,223.00

Gross Profit 9,561.00 8,270.00 7,408.00 5,646.00 4,598.00

PBDT 9,561.00 8,327.00 7,408.00 5,646.00 4,604.00

Depreciation 740.00 807.00 694.00 546.00 469.00

PBT 8,821.00 7,520.00 6,714.00 5,100.00 4,135.00

Tax 2,378.00 1,717.00 895.00 630.00 352.00

Net Profit 6,443.00 5,803.00 5,819.00 4,470.00 3,783.00

Earnings Per Share 112.25 101.10 101.73 78.15 66.14

Equity 287.00 287.00 286.00 286.00 286.00

Reserves 24,214.00 21,749.00 17,523.00 13,204.00 10,876.00

Face Value 5.00 5.00 5.00 5.00 5.00

Infosys Technologies – SWOT Analysis
Strengths
• Operational excellence to deliver GDM
• Capability to attract & keep talents
• Strong financial
• Strong relationship with Large Corporations
• The company has bases in 44 global development centers, most of
which are located in India, although the company has offices in
many developed and developing nations
• Infosys is in a strong financial position. The business turned over
more than 680 crore in 2011 . This means that it has the capital to
expand, and also the basis to leverage potential investors.

Weaknesses
• Over-reliance on US economy
• Limited position in value chain (i.e. No presence or
relationship with consulting business
• Despite being a huge IT company in relation to its Indian
competitors, Infosys is much smaller than its global
competitors. Infosys generated 6443 crore, which is
 relatively low in comparison with large global competitors
such as TCS (7569.99 Crore).

Opportunities
• More cost/speed conscious customers
• Market growth
• Higher awareness on off-shore model
Threats
• Wage inflation due to competition on talents (15+% / year)
• Newer disruptive business models (i.e. web services, web
2.0
 REFRENCES
• WIKIPEDIA
• INFOSYS-AR-11 PDF
• FUNDAMENTAL STRUCTURE OF ORGANIZATION
PDF FILE
• OFFICIAL BOARD.COM(ORGANIZATION CHART)