Infosys Limited is the second-largest software services company in India. Over time, the company rose as an icon of corporate governance but eventually reached its downfall when its co-founders and members of its board had a misunderstanding due to some allegations of governance failures. This case study looks into the role of the board and how it governs the company.
J Ramachandran and Diptiprakash Pradhan
Harvard Business Review (IMB805-PDF-ENG)
January 01, 2020
Case questions answered:
- Why did Infosys Limited do well during the 1991-2010 period? What are the crucial parameters responsible for its success?
- In 2013, was the selection of Vishal Sikka the right choice for leading Infosys? Explain
- Did the board of Infosys manage the relationship with the founders well? Should the board of Infosys publish the investigation reports as demanded by Mr.Murthy? How should the board decide when faced with such demands?
- Critically comment on the appointment of Mr.Nandan Nilekani as Non-Executive Chairman and Mr.Salil Parekh as the CEO.
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Infosys Limited: Governance Imbroglio Case Answers
1. Why did Infosys Limited do well during the 1991-2010 period? What are the crucial parameters responsible for its success?
Infosys Limited has always enjoyed a high level of respect due to the reputation it has earned for providing exceptional service and operating its business in a way that is compliant with applicable laws, open to scrutiny, and ethical.
It was one of the few software companies that recognized the significance of branding, and it chose to accomplish this goal not by employing flashy marketing strategies but rather by investing in the company’s fundamental principles and the trust of its customer base. This made it one of the most successful software companies.
During the beginning stages of the company’s positioning, there was an extremely high degree of cost uncertainty in IT-enabled business solutions. Approximately sixty percent of all projects, according to this estimation, either did not succeed or were significantly delayed.
The rise of Infosys Limited was a significant factor in this development. They guaranteed that the project would be completed on schedule, within the allotted money, and to an exceptionally high standard.
During this time period, the business was also concentrating on the Global Delivery Model (GDM), which would allow it to provide services from many places without compromising the level of quality in any of those services.
The considerable investments that the corporation made in order to increase both its physical and intellectual capital are directly responsible for the company’s success. They provided their staff with cutting-edge conveniences by designing a cutting-edge campus and furnishing it with cutting-edge amenities.
Due to the fact that the company has a physical location where its employees could be recruited and housed, it was able to effectively compete for talent in the labor market.
In addition, the campus has been helpful in putting to rest rumors that the corporation operates a sweatshop by providing evidence to the contrary. In addition to this, Infosys Limited made it a priority to provide its staff members with great opportunities for professional development and academic investigation.
The annual budget for the training program at the company was very close to $180 million. The company has maintained its dedication to the values upon which it was founded.
According to their point of view, the primary competitive factor for businesses should be the amount of quality and value that they create for their customers. They aimed to give excellent service, but they placed a higher priority on productivity and competitive pricing.
They placed such a high priority on quality that they would not take work for less than the agreed-upon amount. As a direct result of this, the corporation severed its ties with General Electric, but it remained steadfast in its commitment to its core values.
The crew was looking for anything of value that they could find. Instead of lowering its costs, it prioritized providing better service to customers.
The developers of the algorithm considered the establishment of a trust to be an essential component. In order to achieve this goal, Infosys Limited has pledged to…
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