Infosys

NAME CLASS DIV R.NO.: ANUMALLA DIVYA RAMESH : F.Y.BMS :A : 14004 PROFESSOR VINOD NAYAK 1 PROJECT ON INFOSYS TECHNOLOGY PVT. LTD. 2 INDEX         INDRODUCTION PROFILE HISTORY SALARIES INFOSYS – Grooming Global Talent HR POLICIES IN INFOSYS QUALIFICATIONS OF HR HUMAN RESOURCES OF MANAGEMENT: Best practices in Infosys Technology SALARY PACKAGES DISPUTES SOCIAL RESPONSIBILITY    3 INTRODUCTION Infosys Technologies Limited is a multinational information technology services company headquartered in Bangalore, India. It is one of India's largest IT companies with 105,453 professionals (including subsidiaries) as of Nov 9, 2009.It has offices in 22 countries and development centers in India, China, Australia, UK, Canada and Japan. Infosys was founded on July 2, 1981 in Pune by N R Narayana Murthy and six others:, N. S. Raghavan, Kris Gopalakrishnan, S. D. Shibulal, K. Dinesh and Ashok Arora,] with N. S. Raghavan officially being the first employee of the company. Nandan Nilekani Murthy started the company by borrowing INR 10,000 from his wife Sudha Murthy. The company was incorporated as "Infosys Consultants Pvt Ltd.", with Raghavan's house in Model Colony, north-central Pune as the registered office. In 1982, Infosys opened an office in Bangalore, which soon became its headquarters. Infosys headquarters in Bangalore, India. Infosys went public in 1993. Interestingly, Infosys IPO was under subscribed but it was "bailed out" by US investment banker Morgan Stanley which picked up 13% of equity at the offer price of Rs. 95 per share. The share price surged to Rs. 8,100 by 1999 making it the costliest share on the market at the time. At that time, Infosys was among the 20 biggest companies by market capitalization on the NASDAQ well ahead of Adobe Systems, Novell and Lycos. According to Forbes magazine, since listing on the Bombay Stock Exchange till the year 2000, Infosys' sales and earnings compounded at more than 70% a year. In the year 2000, President of the United States Bill Clinton complimented India on its achievements in high technology areas citing the example of Infosys. 4 In 2001, it was rated Best Employer in India by Business Today. Infosys won the Global MAKE (Most Admired Knowledge Enterprises) award, for the years 2003, 2004 and 2005, being the only Indian company to win this award and is inducted into the Global Hall of Fame for the same. Infosys was rated best employer to work for in 2000, 2001, and 2002 by Hewitt Associates. In 2007, Infosys received over 1.3 million applications and hired fewer than 3% of applicants. Business Week reported that Infosys, along with Wipro and Tata accounted for nearly 80% of the [H-1B] visa petitions approved in 2007 for the top 10 participants in the program. In April 2009, Forbes rated Infosys among the 5 best performing companies in the software and services sector in the world. In 2009, Infosys was considered one of the Business Week’s 50 Most Innovative Companies. From December 2008 till April 2009, Infosys fired over 2500 employees for poor performance. The company has been hit hard by lower income from a crisis hit European and North American market. On April 15, 2009 Infosys reported its first ever-sequential fall in its revenue in a decade during the March 2009 quarter. 5 Infosys headquarters in Bangalore, India. 6 Infosys Technologies Limited TYPE BSE NASDAQ FOUNDED HEAD QUARTERS KEY PEOPLE (chairman) Kris Gopalakrishna (CEO) & (Director) INDUSTRY PRODUCTS SERVICES consulting REVENUE NET INCOME EMPLOYEES WEBSITE Public 500209 Infy July 2,1981 Banglore,India N.R.Narayana Murthy - Software services IT service Information Technoly services & solutions US$3.16 billion(2009) US$1.16 billion(2009) 1,03,905(2009) Infosys.com 7 HISTORY Established in 1981, Infosys is a NASDAQ listed global consulting and IT services company with more than 105,000 employees. From a capital of US$ 250, we have grown to become a US$ 4 billion company with a market capitalization of approximately US$ 27 billion. In our journey of over 28 years, we have catalyzed some of the major changes that have led to India's emergence as the global destination for software services talent. We pioneered the Global Delivery Model and became the first IT company from India to be listed on NASDAQ. Our employee stock options program created some of India's first salaried millionaires. Infosys Technologies Limited is a leader in software development and was co founded by N.R. Narayana Murthy and a group of seven IT professionals in the year 1981 with an investment of $1000. He emerged as the company's chairman and CEO and is regarded as a great manager because of his numerical abilities and Western style of management. It has created several firsts in Indian industry like being the first Indian company to be listed on NASDAQ in 1999 and the first to provide employee stock options plan (ESOP). The company opened its first international office in USA in 1987. It became a public limited company in 1992 and offered its IPO in three of the nine Indian exchanges in 1993. It received its ISO 2001 certification in 1993 and opened other development centers in India in 1995. By 1995 the firm was worth $200 million, had 900 employees and annual revenue of $20 million. It opened its first European office in United Kingdom in 1996. Infosys established its headquarters in Bangalore as there the workforces were not required to be unionized, benefits to the workforce were relatively a minor cost, and there was a huge potential for profit. The late 1990s was a time for exponential growth and the main reason for this was its offshore software development model. By 2000 its market capitalization was more than $20 billion. In 2003 it established subsidiaries in China and Australia. In 2004 it crossed $1 billion in revenue. In 2006 its revenue crossed $2 billion and it completed 25 years. 8 Employees in INFOSYS Infosys Technologies is the second only company to cross the one-lakh employee mark after industry leader TCS. Infosys and its subsidiaries added 10,117 employees in the second quarter of this fiscal that ended on 30 September, taking the total head-count to 1,00,306 employees, Infosys said on Friday, oct 10 after announcing its quarterly results. During the quarter, the IT job market was under pressure due to the global financial crisis. Many IT firms had also postponed some of the new recruitments for next quarter. Infosys announced its quarterly profit of a 30.2 per cent jump, helped by a weaker rupee, beating market forecasts. Infosys said July-September consolidated net profit rose to 14.32 billion rupees ($291 million) from 11 billion rupees a year ago. However, the results failed to cheer up its shares, which dipped to an intra-day low of Rs 1,040, down over 17 pc from its previous closing price. 9 Recruitment Targets for Infosys: YEAR NO.OF EMPLOYEES 2001 2002 2003 2004 2005 2006 2007-2008 10000 11000 13000 15000 18000 25000 35000 10 Bangalore - India's IT bellwether Infosys Technologies plans to hire 25,000 during the ongoing fiscal year and hike wages by 11-13 percent for its offshore employees. According to T.V. Mohandas Pai, head of human resource development and education and research, Infosys, the company added 5,947 employees (net addition 2,586) in fourth fiscal quarter of 2007-2008, and 33,177 employees (net 18,946) in the full year. In the ongoing year, the company plans to hire 25,000 people (8000 lower than last year) with nearly 18,000 people to be hired from various campuses in the country, taking the total number of employees from the present 91,187 to over 100,000, he said."We have already made campus offerings of 18,000 for this fiscal," Pai said. The company also plans to hire as many locals in the US, Europe, Australia, China and Mexico where it has set up development centers, he continued. The attrition rate has come marginally to 13.4 percent in fiscal 2008 as against 13.7 percent during the previous period, while the utilization rate has been at 76 percent as against 68.4 percent during the previous corresponding period, he added.The average salary hike this year would be between 11-13 percent (compared to 12-15 percent announced last year) for its Indian employees and 4-5 percent for overseas employees, Pai said. Nonetheless, the wage hike for the Indian staff would shave off 2.3 percent from the company's profit margins in the June quarter, while costs of processing visas would impact margins by 80 basis points (0.80 percent) in the same quarter, V. Balakrishnan, CFO, Infosys, said.Infosys has a training center in Mysore with a capacity to train 13,500 candidates every quarter the largest training facility in the world. The campus also provides accommodation for 10,000 candidates and teaching staff.The company, which has been investing about Rs.700 crore ($175 million) each year towards training its employees, plans to invest Rs.1,000 crore ($250 million) more towards training next fiscal, Pai said. 11 INFOSYS-Grooming Global Talent: Last year, over 1.3 million people applied for a job at Infosys. Only 1% of them were hired. In comparison, Harvard College took in 9% of candidates. Infosys has always focused on inducting and educating the best and the brightest. With global hiring practices, coupled with everexpanding university programs such as Campus Connect and development centers across the globe, Infosys is able to source and nurture talent while delivering lasting value to clients. Infosys, which trains over 15,000 new recruits every year, is well prepared to win the battle for top-notch talent. At the heart of this education program is a fully equipped $120 million facility in Mysore, about 90 miles from Bangalore. 12 HR policies in infosys Internally developed code of conduct and policies to guide us The following policies on various sustainability issues are adopted uniformly through out the reporting entity . HIV (+) & AIDS CONTROL POLICY Infosys would take measures to prevent the incidence and spread of HIV and AIDS in the society. In case of need, the company would arrange to provide counseling and medical guidance to these patients and their families. QUALITY POLICY Consistent with the group purpose, Infosys shall constantly strive to improve the quality of life of the communities it serves through excellence in all facets of its activities. We are committed to create value for all our stakeholders by continually improving our systems and processes through innovation, involving all our employees. This policy shall form the basis of establishing and reviewing the Quality Objectives and shall be communicated across the organization. The policy will be reviewed to align with business direction and to comply with all the requirements of the Quality Management Standard. ENVIRONMENTAL, OCCUPATIONAL HEALTH & SAFETY POLICY Infosys reaffirms its commitment to provide safe working place and clean environment to its employees and other stakeholders as an integral part of its business philosophy and values. We will continually enhance our Environmental, Occupational Health & Safety (EHS) performance in our activities, products and services through a structured EHS management framework. Towards this commitment, we shall; 13 * Establish and achieve EHS objectives and targets. * Ensure compliance with applicable EHS legislation and other requirement and go beyond. * Conserve natural resources and energy by constantly seeking to reduce consumption and promoting waste avoidance and recycling measures. * Eliminate, minimize and/or control adverse environmental impacts and occupational health and safety risks by adopting appropriate "state-of-the-art" technology and best EHS management practices at all levels sand functions. * Enhance awareness, skill and competence of our employees and contractors so as to enable them to demonstrate their involvement, responsibility and accountability for sound EHS performance. HUMAN RESOURCE POLICY Infosys recognizes that its people are the primary source of its competitiveness. It is committed to equal employment opportunities for attracting the best available talent and ensuring a cosmopolitan workforce. It will pursue management practices designed to enrich the quality of life of its employees, develop their potential and maximise their productivity. It will aim at ensuring transparency, fairness and equity in all its dealings with its employees. Infosys will strive continuously to foster a climate of openness, mutual trust and teamwork. ALCOHOL AND DRUGS POLICY Infosys believes that the loyalty and commitment of its employees depend upon the quality of life they are offered at work and at home. We recognize that indiscriminate use of alcohol and drugs is injurious to the wellbeing of individuals, their families and the community as a whole. We acknowledge that the misuse of these psychoactive substances is a major health and safety hazard. Infosys is therefore committed to creating an alcohol and drug-free environment at the work place. This would be achieved through the involvement of all employees and the Joint Departmental Councils in spearheading appropriate initiatives. The initiatives would include; 14 * Raising awareness, through the dissemination of information, education and training and by promoting healthy life styles among our employees and their families. * Motivating those employees who have an alcohol/drug problem, to seek assistance, while maintaining confidentiality about such cases. RESEARCH POLICY Infosys believes that research provides the foundation for sustained, longterm, stakeholder delight. Infosys shall nurture and encourage innovative research in a creative ambience to ensure that the competitive advantage in its overall business is retained and surpassed. Towards this goal, the Company commits itself to providing all necessary resources and facilities for use by motivated researchers of the highest calibre. Research in Infosys shall be aligned to the technological initiatives necessary to evolve and fulfil the overall business objectives of the Company. CORPORATE SOCIAL RESPONSIBILITY POLICY Infosys believes that the primary purpose of a business is to improve the quality of life of people. Infosys will volunteer its resources, to the extent it can reasonably afford, to sustain and improve healthy and prosperous environment and to improve the quality of life of the people of the areas in which it operates. ENERGY POLICY Infosys reaffirms its commitment to conserve scarce energy resources and shall endeavor to* Comply with national and international regulations. * Adopt best available technology for energy efficiency. * Implement world-class operating practices. * Conduct regular Energy Audit for continual improvement. * Promote energy efficiency through mass awareness. 15 Implementation The strategic goals of the organization are derived from Vision, Mission, Value, Policies and Code of Conduct (Refer Annexure-II) of the Organization. These goals as indicated in MD's Balance Score Card (Figure#3.7) deployed across the organization. These policies are applicable only to Infosys and not applicable to its subsidiaries, associates or supply chain partners. Listening to our shareholders The minutes are prepared for proceedings of Annual General Meeting. These minutes include the suggestions, comments and feedback from the shareholders. Concerns of shareholders are discussed in the Board Meeting and after prioritization of these concerns Board directs the management to integrate the same in business decision. Besides the AGM, Investor Satisfaction Surveys, meeting with investors and an Investor Grievance Cell are other forums through which shareholders provide recommendations or direction to the Board. pvt. Ltd. 16 Minimum Qualifications for HR: The core functions for any Human Resource Department are: 1. Recruitment, 2. Performance Management 3. Training & development, 4. Compensation & Benefits, 5. Organisational Development, For above mentioned topics we need to study: 1. Priniciples of Management, 2. Organisational Behaviour, 3. Human Resource Development, 4. Labour Laws, 5. Labour Welfare, 6. Personnel Management, 7. Wages & Salary Administration Labour Laws and Labour Welfare two subjects are highly recommended for the professionals or students who is willing to work as a factory HR or want to be specialized into Compensation & Benefits. 17 Human Resource Management: Best Practices in Infosys Technologies Best Employer in India Infosys Technologies Ltd. (Infosys), based in Bangalore, India, was named 'The Best Company to Work for in India' by Business Today magazine in a survey conducted by Business Today, HR consulting firm Mercer, and international market research firm TNS. Infosys had been adjudged the 'Best Company to Work For' in 2001 and 2002 but had lost this position in the next couple of years (Refer Exhibit I for the 'Best companies to work for in India' from 2001-2006). In the 'Best Employer' survey conducted by Dataquest7-IDC8 in the year 2006, Infosys was adjudged the 'Dream Company to Work for.' Attracting the best and the brightest and creating a milieu where they operate at their highest potential is very important. Our campus and technology infrastructure is world-class, we pay a lot of attention to training and competency building, we try to have sophisticated appraisal systems, we try to reward performance through variable pay. These are all part of the same motive."10 Since the early 2000s, Infosys' operations had been growing rapidly across the world. The number of employees in the company also increased four-fold to 44,658 in March 2006 as compared to 10,738 in March 2001 (Refer Exhibit III for the number of employees in Infosys between 1995 and 2006). The company believed that its key assets were people and that it was important to bring its employees on par with the company's global competitors. In spite of its rapid global expansion, Infosys retained the culture of a small company. According to Bikramjeet Maitra (Maitra), Head of Human Resources, Infosys, "We like to maintain a smaller company touch and we have split the overall business into several smaller independent units of around 4,000 people each. 18 Moreover, Infosys was also recognized globally and featured among the top 100 companies in Computerworld's9 'Best Places to Work for in IT – 2006'.For participating in this survey, the companies needed to have revenues of over US$ 250 million in 2005, and to employ 500 employees in the US. Infosys also featured in the list in 2004 and 2005 (Refer Exhibit II for some of the honors/awards received by Infosys). On the company's HR practices, Nandan Nilekani (Nilekani), CEO, President and Managing Director of Infosys, commented, "It is about creating a highly motivated workforce because this is not a factory where you can monitor the quantum of output at the end of the day. But in the intellectual business you cannot do that. So, you have to create a motivated set of people who can operate. 19 Salaries for Employees Salaries in USD Programmer Analyst 3,049 Infosys Salaries Project Manager 1,390 Infosys Salaries ERP Analyst 755 Infosys Salaries Technical Analyst 720 Infosys Salaries Programmer Analyst - Hourly 563 Infosys Salaries Business Analyst 490 Infosys Salaries Systems Administrator 275 Infosys Salaries Technical Analyst - Hourly 91 Infosys Salaries Project Manager - Hourly 86 Infosys Salaries ERP Analyst - Hourly 59 Infosys Salaries $29.00/hr $42.69/hr $36.54/hr $55,930 $72,112 $28.18/hr $72,658 $59,835 $81,191 Average $55,965 20 Disputes Disputes can be mainly defined as a verbal controversy or a debate because of the indifference in ideas and opinions. In HR department disputes are most likely to take place where the whole departments has to work for the human resources and to take care of their needs and at the same time look out for the companies welfare and profits too . Disputes can take place between the employee and employee or a employee and the managers or any person of the higher authorities. There are many reasons for a dispute to take place in an organization some of the reasons are as follows • • • • • • • lawsuit(litigation) arbitration collaborative law mediation conciliation many types of negotiation facilitation One could theoretically include violence or even war as part of this spectrum, but dispute resolution practitioners do not usually do so; violence rarely ends disputes effectively, and indeed, often only escalates them. Most of the time in handling conflict between employees HR people use an investigative approach, reviewing whose been doing what and taking appropriate action. Often, particularly between two employees, interest-based mediation can be more effective as the parties themselves determine and commit to a resolution. Why do conflicts sometimes go on and on? often (depending on the individuals) it is easier to be tough and adversarial than to communicate nicely. Tough takes energy, but nice takes time and involves obligations. Management peers may be in conflict, employees within a department may be feuding and of, course, if there is a union nothing is more natural (possibly) than for management and the union to fight. 21 Some people somewhat prefer conflict. It cuts down on the need to communicate and ignoring the other party means not having to face that unpleasant person any more than necessary. However, continuing conflict between linked parties is not efficient and can be very unpleasant and obstructive for other people within the two camps. One approach to handle serious conflict between parties is to use interestbased mediation. The two parties should understand and agree to the process in advance and together with the person acting as mediator meet for a specified period. The critical process opener is for each party, without interruption, to express the situation from his/her perspective and then for the other party to summarize what he/she has heard. No evidence is submitted or witnesses called as the truth of allegations is less important than how the person feels and perceives things to be. As the process continues, it moves from the general picture to specific issues, with emphasis continuing on how the parties feel about the matters they are expressing. Points with potential for resolution may emerge and further brainstorming may confirm some solid areas where agreement between the parties should be possible. When the parties are linked by work, common issues are often communications related e.g. consultation or advance notice on certain things, promptly receiving required data, agreeing to meet to discuss certain things etc. Because the subsequent agreement is reached between the parties and not imposed by the mediator, the probability of significant improvement in their relationship is greater. These are just general comments on a process that can be very effective. As earlier about union relationships. Modified interest-based mediation can be perfect in handling some union/management relationship issues. There is often reluctance from both parties, but I have been involved in a very effective session which followed a particularly tough contract negotiation. A helpful exercise, however, is to imagine what the other party (the union) would say at an interest-based mediation (not to be confused with other mediation processes associated with labor relations). You may guess that the main issues would be respect, communication, lack of trust etc.. Such considerations may help you in developing strategy to proactively initiate contact with the union to work on issues of mutual interest and establish a more positive union/management relationship. 22 For eg: A us based MNC had given Infosysa project on JAVA based platform. Theb deal was made such that the project had to complete in a period of 3 months, if unable to complete within that time, an additional 15 days would be allotted as mutual understanding. It never happened in the history of the company that they didn’t complete an project within given time. But this time luck wasn’t in the their favour and there are two people mainly responsible for this problem. When a company takes up a project, it divides the the project into parts and distributes the work among teams. For this particular project, five teams were selected. Each team consists of 5 programmes and makes a total of 25 members. Amongst those 5 members, a senior programmes is appointed as team leader, Among the 5 team leader, 3 of them had an experience of 6-8 years and they had atleast worked successfully on 5 prior projects. But the other 2 leaders had an experience of 1-2 years but were never part of any prior projects. So, it was decided that the first-(a)_Senior team leader to complete his part of work and the second (b)team leader will help the fifth team leader. 4 teams namely 1st, 3rd & 5th have successfully completed their parts except the 4th team. Due to this incomplete pat, the project was not completed within the given fine including the extra 15 days. On enquiry, the team leader of the 4th team complained that his team didn’t get much help from his senior coluage, has he expected. But the senior coluage had given his statement that his junior coluage had never shown any interest in receiving his help. Due to their egoistic nature it was the company which suffered the loss. The company has both its reputation in the market and the credits. Infosys takes up social responsibility IT services major Infosys is doing its bit to improve the lot of students from economically disadvantaged sections of society. The company had chosen hundred young unemployed engineers from disadvantaged sections for a six23 month training at IIT Bangalore. Additionally, the company also trained 60 graduates from disadvantaged sections and provided them with free training. Fifty of these students were hired to work at Infy's BPO subsidiary, Progeon. This is a call to corporate India to pick up the gauntlet and intervene through education and training to relieve the wage pressures. Infosys annually spends around 100 million of its $2.2 billion revenue on training. BANGALORE: IT services major Infosys is doing its bit to improve the lot of students from economically disadvantaged sections of society. Mohandas Pai, Infosys head of HR, said that the company had chosen hundred young unemployed engineers from disadvantaged sections for a sixmonth training at IIIT Bangalore Additionally, the company also trained 60 graduates from disadvantaged sections and provided them with free training. Fifty of these students were hired to work at Infy's BPO subsidiary, Progeon. Pai is hoping that other corporates would follow suit. “This is a call to corporate India to pick up the gauntlet and intervene through education and training to relieve the wage pressures.” On the other hand, he also warned that there was a need for immediate reform in the education system itself since it was putting an unbearable cost of around $2.3 billion on training in the industry. Infosys annually spends around 100 million of its $2.2 billion revenue on training. Progeon has also bolstered programs to attract students on college campuses. The company recently held its second academic conclave, which was attended by lecturers from for 50 colleges in Bangalore and Mysore. The company has also created a program called Project Genesis that helps degree colleges in tier-two and –three cities to align their curriculum to industry requirements. In 2005, around 390 lecturers across Karnataka and Rajasthan were trained who in turn taught 5900 students. The company has been working closely with both students and teachers to dispel myths on the BPO industry such as health hazards, unsafe working conditions and that it cannot be a long-term career option. These efforts seem to be paying off. “A few years ago, less than a hundred students joined Progeon from campuses. This year 3800 job offers were made of which 1800 accepted the offer and joined the company,” said Nandita Gurjar, VP and head, HR, Progeon. 24 25 26 27 Abstract: Infosys Technologies, a leading software company based in India, was voted the best employer in the country in many HR surveys in the recent years. The company was well known for its employee friendly HR practices. Though Infosys grew to become a US$ 2 billion company by the year 2006, it still retained the culture of a small company. Infosys attracted the best talent from across the world, and recruited candidates by conducting one of the toughest selection process. All the selected candidates were required to go through an intensive 14 week training program. All the employees were required to undergo training every year, and some of the chosen employees were trained at the Infosys Leadership Institute to take on higher responsibilities in the company. Infosys was one of the first companies to offer ESOPs to its employees. The company followed variable compensation structure where the employees' compensation depended on the performance of individual, the team and the company. The case highlights many such best practices of Infosys in human resource management. It also discusses the challenges faced by the company to retain its talented workforce. Issues: » Study and appreciate some of the unique HR practices at Infosys » Understand the recruitment, selection and training practices of Infosys » Examine some of the retention strategies adopted by the company » Analyze some of the challenges faced by Infosys on the HR front 28 29 30 31 32 33