Work Integrated Learning Project -

12/15/2019
Case Study Development Based on
Selected Problem Statement of Infosys
Limited, India
MGA-GE 707
Work Integrated Learning Project - Case Study Development Based on Selected Problem Statement of
Infosys Limited, India

ANAL ABBAS NITHIN RAJENDRA S. ASWIN.K.RAJAN

1812099 1812123 1812115

DINO.P.PONNACHAN NADIR ALI ROHAN JOHN

1812084 1812082 1812064

SILPA VINCENT KRISHNA ANILKUMAR JOSINE MERINE .V.

1812053 1812147 1812096

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Work Integrated Learning Project - Case Study Development Based on Selected Problem Statement of
Infosys Limited, India

Table of Contents

1. Infosys- information technology based consulting company in India ................. 3

1.1 A New Beginning and Spectacular Growth – ................................................ 3
1.2 The growth of the brand (a.k.a the Infosys revolution)-................................. 3
2. Acquisition of Infosys Ltd .............................................................................. 5
3. Problem statements ............................................................................................ 6
4. The stock erosion ............................................................................................ 7
5. The reign of the Whistle Blowers .................................................................... 8
6. Accusation of visa fraud in the USA ............................................................... 8
7. Conclusion ....................................................................................................... 10
8. Reference ......................................................................................................... 11

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Work Integrated Learning Project - Case Study Development Based on Selected Problem Statement of
Infosys Limited, India

1. Infosys- information technology based consulting company in India

1.1 A New Beginning and Spectacular Growth –

The dream of seven engineers from Pune, Maharashtra which turned into a global success, Infosys
was registered as Infosys consultant private limited on 2nd of July 1981. Infosys has a job
geography of 228,000 employees, of whom more than half are software professionals

The name of the company was changed to Infosys Technologies Private Limited in April 1992 and
to Infosys Technologies Limited when it became a public limited company in June 1992. It was
later on renamed to Infosys Limited in June 2011.

An initial public offer (IPO) was made in February 1993 with an offer price that stood at ₹95
(which would be equivalent to ₹510 or US$7.40 in 2018) per share against book value of ₹20
(which would be equivalent to ₹110 or US$1.60 in 2018) per share was undersubscribed but it was
"bailed out" by US investment bank Morgan Stanley, which picked up 13% of equity at the offer
price. The newly “bailed out” shares were listed in stock exchanges in June 1993 with trading
opening at ₹145 (equivalent to ₹790 or US$11 in 2018) per share.

1.2 The growth of the brand (a.k.a the Infosys revolution)-

The brand is not often seen in the mass media, makes do with minimal advertising budgets,
operates in a sector that asses the risk of turning into a commodity and is still has a net worth of
approximately Rs 37,000 crore (Rs 370 billion)

Infosys was and is a powerful brand in the realm of information technology. The core founders
like NR Narayana Murthy and Nandan Nilekani are used to the iconic status in the country and
overseas, and it gets work place, transparency and governance awards with unfailing regularity.
The campuses are world class. A large chunk of its stock is held by employees.

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Work Integrated Learning Project - Case Study Development Based on Selected Problem Statement of
Infosys Limited, India

That's one side of the coin which is the public face – what investors, associates, analysts and
employees get to see. Behind the scenes, there works a dedicated team that regularly monitors
Infosys' brand health and makes sure that it grows from strength to strength. The tools employed
are soft in nature and seek to create a halo around the brand. No big bucks spent below the line,
no media blitzkrieg - the whole effort is to work on the conscience of stakeholders like customers,
partners, shareholders, employees and the society.

"Infosys 1.0 raised the standard for delivery predictability, financial transparency and corporate
governance," says Infosys Technologies' head of global branding and corporate marketing, Aditya
Nath Jha. "The next stop is talent management, scalability and sustainability - how do I paint the
enterprise of tomorrow.

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Work Integrated Learning Project - Case Study Development Based on Selected Problem Statement of
Infosys Limited, India

2. Acquisition of Infosys Ltd.

Name of acquired Acquisition Business of acquired

Based in Acquisition cost
company date company

Expert Information
Australia US$23 million Dec 2003 IT service provider
Services

Insurance and financial

McCamish Systems USA US$38 million Dec 2009
services

Strategic sourcing and category

Portland Group Australia AUD 37 million Jan 2012
management

Lodestone Holding
Switzerland US$345 million Sep 2012 Management consultancy
AG

Panaya Israel US$200 million Mar 2015 Automation technology

Skava USA US$120 million Apr 2015 Digital experience solutions

Information management
Noah-Consulting USA US$70 million Nov 2015
consulting services

Undisclosed
Skytree USA Apr 2017 Machine learning
amount

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Work Integrated Learning Project - Case Study Development Based on Selected Problem Statement of
Infosys Limited, India

Product design and customer

Brilliant Basics UK GBP 7.5 million Aug 2017
experience

Sales force advisor and

Fluido Oy Finland EUR 65 million Oct 2018
consulting partner

Advertising and creative

WongDoody USA US$75 million Jan 2019
strategy services

EUR 127.5
Stater N.V. Netherlands Apr 2019 Mortgage services
million

3. Problem statements
Infosys Limited, India's second largest Information Technology services exporter has its sixth
CEO in its rich history that has been flourishing for the past 36 years. And in this time span the
company has faced several barriers which has been discussed below:

a. Customer Outreach:

While contracts for certain services are generally spread over a time period of several years and
there is no immediate danger, customers are usually wary when vendor firms undergo turbulence.
Parekh's first priority is to talk to key customers and reassure them that everything is hunky-dory
and he is in control of the situation.

b. Working relationship with founders:

Vishal Sikka was felled by his lack of a good relationship with the founders. The founders might
hold only a small percentage (about 12%) of the company but cast a long shadow on the company's

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Work Integrated Learning Project - Case Study Development Based on Selected Problem Statement of
Infosys Limited, India

functioning. So Parekh needs to work out clearly red lines and open clear lines of communication
with the founders and the board.

c. Improve employee morale:

All the recent tumult has left employees with low morale. He needs to reassure them that they and
the company has a bright future.

d. Strategy:

Parekh will also need to review strategy and come to a conclusion whether he wants to chart a
different course from what Sikka laid out or move faster on the same path. Either way he needs to
seriously look at strategy and market tactics.

e. Restore stakeholder trust:

Infosys for long was seen as a torchbearer for corporate governance, a reputation which took a
strong beating in the recent fracas. He will have to talk to other stakeholders including investors,
analysts and market watchers on restoring company's reputation

4. The stock erosion

Infosys saw its market capital erode by over Rs 10,000 crore, as its shares dropped 3.22% on the
Bombay Stock Exchange (BSE) on August 20, after the announcement on the stepping down of
chief financial officer MD Ranganath. Analysts said senior management exits at the company were
a key concern. Ranganath, an Infosys veteran of nearly two decades, is the fourth senior executive
to quit the company after Salil Parekh took over as chief executive in January

The main problem was the investors’ concerns over the stability of the senior management team
in the wake of the CFO’s recent resignation and the ability of Infosys to deal with such top-level
departures.

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Work Integrated Learning Project - Case Study Development Based on Selected Problem Statement of
Infosys Limited, India

5. The reign of the Whistle Blowers

India’s second software services exporter, Infosys Limited, is probing whistleblower complaints
that the top two executives of the company have involved themselves in “unethical practices” to
boost short-term revenue and profit, sending its shares down 16% on Tuesday. There has been
instances of several complaints filed by the employees who have stated the following “Several
billion dollar deals of last few quarters have nil margin”

The Infosys Bengaluru headquarters ,considered to be India’s IT bellwether, also did not take into
account expenses such as visa costs to boost profit, while it was pressured not to recognize
reversals of a $50 million payment upfront in a contract, which is against accounting practices. It
was alleged that Chief Financial Officer Nilanjan Roy prevented employees from highlighting
issues around large deals in presentations to the company’s board. This was done by bypassing
reviews and approvals and instructing sales team not to send mails for approval.

6. Accusation of visa fraud in the USA

During the year 2011, Infosys was accused of committing visa fraud by using B-1 (visitor) visas
for work requiring H-1B (work) visas. The allegations were initially made by an American
employee of Infosys in an internal complaint. He subsequently sued the company, claiming that
he was harassed and sidelined after speaking out. Although that case was dismissed, it along with
another similar case, brought the allegations to the notice of the US authorities – and the U.S.
Department of Homeland Security and a federal grand jury started investigating.

In October 2013, Infosys agreed to settle the civil suit with US authorities by paying US$34
million. Infosys refused to admit guilt and stressed that it only agreed to pay the fine to avoid the
nuisance of 'prolonged litigation'. In its statement the company said "As reflected in the settlement,
Infosys denies and disputes any claims of systemic visa fraud, misuse of visas for competitive
advantage, or immigration abuse. Those claims are assertions that remain unproven"

For the second time in about as many years, the Indian icon synonymous with the country’s
technological ascendancy is being forced to answer accusations of impropriety. In the most recent

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Work Integrated Learning Project - Case Study Development Based on Selected Problem Statement of
Infosys Limited, India

of a stream of grievances aired anonymously over past years, whistle-blowers accused Chief
Executive Officer Salil Parekh of instigating employees.

At Infosys limited, the revenue growth slowed to single-digit percentages, while margins of
operations shrank. This marked the end of an era when its co-founders delivered impeccable
performances quarter after quarter, ensuring the stock to investors. College fresher’s who were
engineers compared a job offer from Infosys to being the recipient of a winning lottery. During
the month of October, Infosys posted a 2% fall in quarterly profit after nervous clients held off on
spending and growth in traditional service contracts stalled. That underscore

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Work Integrated Learning Project - Case Study Development Based on Selected Problem Statement of
Infosys Limited, India

7. Conclusion
When it comes to the welfare and development of a particular company nevertheless whether it’s
in the realm of information technology, some small but minute things can be taken into accord and
should also be implemented. Such as

 Embracing transparency
 Recognize and reward valuable contribution
 Cultivate strong co-worker relationship
 Embrace and inspire employees autonomy
 Practice flexibility
 Communicate purpose and passion
 Promote a team atmosphere
 Give and solicit feedback

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Work Integrated Learning Project - Case Study Development Based on Selected Problem Statement of
Infosys Limited, India

8. Reference

 https://blog.bonus.ly/10-dead-simple-ways-improve-company-culture/

 https://www.infosys.com/sustainability/Documents/infosys-sustainability-report-2018-
19.pdf

 https://www.reuters.com/

 https://economictimes.indiatimes.com/

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