An 8×8 foot cell, three days without food, a foreign country, and a communist regime breathing down your neck – all for daring to criticize their system. No, this isn’t a scene from a movie. It is the unlikely birthplace of a revolutionary idea.
Imprisoned, confused, and on the verge of starvation, this man underwent a radical transformation, shifting from a confused leftist to a compassionate capitalist. He set about changing the face of technology and creating a company that would rewrite India’s economic future.
Curious to know who this person could be? Buckle up because you’re about to meet the mastermind behind a business empire, and the answer might surprise you.
A Life Shaped by Values
The fifth of eight children, Narayana Murthy was born into a modest lower-middle-class family in Mysore. His father, a school teacher,taught him the importance of public good and sacrifice, while his mother focused on honesty.
His civil servant uncle steered him towards it, but Murthy harbored a different dream. He pursued engineering to become a junior engineer in a hydroelectric power plant – one of Nehru’s “temples of modern India.”
The Allure of Computers
Fate, however, had other plans. His Master’s degree at IIT Kanpur introduced him to the captivating world of computers, a technology that would become the cornerstone of his revolutionary vision.
The Irresistible Offer
Despite lucrative job offers, Murthy was drawn to Ahmedabad for an opportunity. Professor Krishnayya of the Indian Institute of Management promised access to “a great, modern mini-computer,” making the institute the third business school globally (after Harvard and Stanford) to install a time-sharing system.
The prospect of a collaborative environment where he could learn relentlessly for a modest Rs. 800 a month proved irresistible. He later recalled this decision as the best one of his life.
Learning and Legacy
Murthy honed his analytical skills as a research associate at IIM Ahmedabad. His thirst for knowledge soon translated into action when he became a chief systems programmer.
He wasn’t just writing codes; he was making history by developing India’s first BASIC interpreter for the TDC 312, a computer far ahead of its time in late-1960s India.
From Rejection to Revolution
The seeds of Infosys were sown in technical prowess and professional rejection. When Murthy’s application for a position at Wipro was denied, it sparked a fire within him.
Little did Wipro know they had just given birth to one of their biggest competitors. While his first IT venture, Softronics, wasn’t successful, it provided valuable lessons that Murthy would carry forward.
The Unlikely Beginnings of a Tech Giant
Murthy envisioned a company that could revolutionize the industry. He started with a shoestring budget of just ₹10,000, borrowed from his wife. His first office was the front room of his own home.
Undeterred, Murthy and six colleagues set out to build a global IT services company in India.
The initial capital was not enough. So, Murthy negotiated a lifeline with a prospective client, securing working capital for a few crucial months.
Battling Bureaucracy
The challenges were many. In the 80s, computers were rare, and getting a telephone connection took years. While his colleagues in the US toiled away on software development, Murthy became a master of bureaucratic hurdles.
Securing a license to import a single computer took 50 trips to Delhi over three years! Even getting a phone line, crucial for daily client updates, felt insurmountable.
The RBI’s bizarre forex regulations added to his difficulties. They asked Murthy to earn foreign exchange and share half with them when he returned it to India. Despite these issues, Murthy and his team’s unwavering dedication kept them going.
Building Trust
Murthy understood the importance of client relationships. He tirelessly ensured his clients were satisfied and their payments arrived on time.
It meant long waits at the RBI office to secure a portion of the earned income to send as maintenance allowance for his colleagues in the US.
The Power of Persistence
One instance perfectly exemplifies Murthy’s resourcefulness. A New York client offered a lifeline – an IBM-compatible computer on loan. The catch? Daily progress reports over the phone. This, again, highlighted the lack of basic infrastructure.
The phone department prioritized retired government officials, leaving Infosys’ request in limbo. But Murthy wouldn’t give up. He persisted, finally securing a connection that showed the lengths he would go to for his clients and team.
GDM Disrupts the IT Landscape
Infosys started small, but its focus on quality and client satisfaction quickly paid off. Realizing the potential of global markets, Infosys pioneered the ever-present Global Delivery Model (GDM).
This innovative approach allowed them to deliver high-quality software services remotely, making them a cost-effective option for Western companies.
Murthy’s Vision Takes Flight
Pune, their initial home base, offered limited growth potential. In 1983, they made a strategic move, shifting their headquarters to Bangalore, India’s burgeoning tech hub, the beginning of Infosys 1.0, a vision Murthy spearheaded.
The now-legendary Global Delivery Model (GDM), Murthy’s brainchild, was a stroke of genius. It allowed Infosys to deliver high-quality software development services remotely, leveraging India’s skilled workforce to offer cost-effective solutions to Western companies.
Innovation to International
The GDM was rapidly becoming the industry standard by 1987. With its sights set on global expansion, Infosys opened its first international office in Boston, USA, solidifying its position as a global player.
The early 1990s ushered in a period of economic reforms in India, and Infosys was perfectly positioned to ride the wave.
Demand for outsourced software development services skyrocketed, and Infosys’ revenue grew exponentially, crossing the ₹8.66 crore mark (approximately $3.3 million) by 1992.
From Unsubscribed to Unstoppable
Confident about their success, they decided to go public in February 1993. However, the market wasn’t ready for a software company, and the IPO was undersubscribed.
Just when Infosys’s dreams seemed to be faltering, investment bank Morgan Stanley, recognizing Infosys’s potential, stepped in with a strategic bailout, acquiring 13% of the company’s equity. This financial backing and the growing demand for its services propelled Infosys forward.
Building a People-First Company
The company’s success wasn’t just about numbers. Infosys believed in empowering its employees.
Their pioneering Employee Stock Option Program (ESOP) created a sense of ownership and shared success, making Infosys a magnet for top talent. This focus on employee well-being became a core part of their company culture.
Beyond Borders
With its roots in Bangalore, Infosys continued to flourish. In 1994, it moved to a more permanent home in Electronic City. They extended beyond India’s borders, opening a development center in Fremont, California, solidifying its presence in the US market.
Recognizing the Internet’s potential, Infosys established its e-business practice in 1995. This move coincided with its European expansion, marked by the opening of its first office in the UK. Development centers in Toronto and Mangalore bolstered Infosys’ global reach.
Philanthropy Takes Root
Giving back to society became a core principle for Infosys. In 1996, they established the Infosys Foundation, a philanthropic arm dedicated to supporting education, rural development, healthcare, and various social causes.
A Whirlwind of Growth
1997 saw the opening of an office in Toronto, Canada, and the launch of their Enterprise Solutions and packaged applications practice.
In 1999, Infosys became the first Indian company listed on the NASDAQ, achieving a CMM Level 5 certification for excellence in software development processes. In 2000, they doubled their revenue to $200 million.
Focusing on Employee Wellbeing
This phase was about exploring new service lines. By 2001, revenue had doubled to over $400
million, and their commitment to employee well-being was recognized with a “Best Employer”
award.
N.R. Narayana Murthy Exits
A significant leadership change occurred in 2002. N.R. Narayana Murthy, the visionary leader who had steered Infosys from a shoestring startup to a global IT giant, stepped down as CEO.
He assumed the roles of Executive Chairman and Chief Mentor, while co-founder Nandan M Nilekani became the new CEO.
Growth Continues
In 2004, the company’s revenue reached a record ₹3,564.5 crore ($1 billion), and it launched Infosys Consulting. For its excellence, Infosys was inducted into the Global MAKE Hall of Fame.
2006 saw revenue doubling to $2 billion and a workforce exceeding 50,000 employees.
In 2008, the revenue doubled again, crossing $4 billion, while annual profits exceeded $1 billion. By
2010, the revenue surpassed $5 billion.
Hampering Infosys Rise
Infosys’ meteoric rise wasn’t easy. In 2011, they were accused of visa fraud in the US, using visitor visas for work requiring specific work visas. 2019 a subsidiary settled tax fraud allegations with California’s Attorney General.
More recently, their takeover of government portals like income tax and GST resulted in criticism for malfunctions and poor performance.
Their company culture sparked debates when founder Narayana Murthy advocated for a 70-hour workweek, raising questions about work-life balance in the Indian IT industry.
A Decadal Climb
Infosys’ journey reflects a relentless climb to the top. The 2010s were marked by global expansion, innovation, and industry recognition.
The 2020s saw their commitment to sustainability with early carbon neutrality and strategic partnerships, cementing their leadership with AI-powered platforms like Infosys Cortex and others.
Today, Infosys is still a financial powerhouse and a top IT services brand with a global workforce exceeding 317,000 employees and a presence in over 85 countries.
The Workforce of Tomorrow
Infosys advocates a future of work that blends flexibility, automation, and human connection. They’ve embraced a hybrid model that goes beyond traditional office or home environments, aiming to attract and retain diverse talent.
To make remote and flexible work seamless, Infosys is leveraging cutting-edge automation tools and optimizing outcomes.
But technology isn’t the sole focus. They are looking at experiential strategies that utilize digital tools to engage and enthrall talent, fostering a dynamic and attractive work experience.
I’m Archana R. Chettiar, an experienced content creator with
an affinity for writing on personal finance and other financial content. I
love to write on equity investing, retirement, managing money, and more.
