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MYSORE C MMERCE F K C C I J o u r n a l Issue 09<br />
MYSORE C MMERCE F K C C I J o u r n a l Issue 09<br />
Contributor’s Column<br />
Lessons from the Infosys Fiasco - I<br />
D. Muralidhar, Past President, <strong>FKCCI</strong><br />
The dust is settling down on the rumblings at India’s most well known<br />
IT behemoth, Infosys. This is clear from the fact that it is moving away<br />
from the glare of the print media and the TV media. Within the<br />
organization, it seems to be mercifully business as usual. But for all of<br />
us Bengaloreans who have grown up hearing the hoary success story<br />
of Infosys and how it captured the imagination of the country, the very<br />
public squabble was quite disappointing and embarrassing.<br />
The story of Infosys is the story of new and liberalised India. The<br />
humble beginnings of the company, its founder’s middle class<br />
background and the humongous success they achieved which also<br />
created wealth to the employees and investors is a part of the much<br />
celebrated folklore of the Indian IT industry. The other notable<br />
players like TCS and Wipro of the day grew from a different stock and<br />
never received such attention, recognition and acclaim. Somehow<br />
the story of Infosys became a preferred topic for discussion and<br />
inspired many technocrats and wannabe entrepreneurs to look at<br />
India as a possible choice for setting up enterprises, especially in the<br />
field of information technology.<br />
Infosys was undoubtedly one of the anchor industries for the fast<br />
growth of IT and related business in Bengaluru. The spin-off from<br />
Infosys’ success rubbed off on other businesses and the world<br />
started to take Indian businesses seriously. It's difficult to quantify<br />
the feel-good factor associated with this phenomenon, own<br />
experience being just a testimony. The other businesses like<br />
manufacturing which suffered from a inherent "made in India"<br />
disadvantage, suddenly saw a change in the perception of<br />
international trading community, about the capabilities of Indian<br />
products and services. The impact got amplified with other various<br />
changes in the Indian milieu, but the benefit of initial torque belongs<br />
to these pioneering IT businesses<br />
Infosys today is a 10 billion dollar company with more than two lac<br />
employees located in many parts of the world. The founders led by<br />
Narayana Murthy managed the business till 2014 and handed over<br />
the reins to a professional board of management. During their time,<br />
the promoters ran the company with impeccable quality of corporate<br />
governance and transparency. Normally, it's a huge challenge for<br />
any fast growing organisation to ramp up internal systems without<br />
sacrificing the effective founding principles and governance, but<br />
Infosys with its promoters-driven management never lost sight<br />
of these needs and kept raising the bar of corporate governance.<br />
(To be continued)<br />
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