History of Infosys from 1981-2024– From $250 Startup to $70 Billion Global IT Leader

As the global leader in next-generation digital services, Infosys has pioneered the globalization of the Indian technology sector. For business owners, marketers, content creators or anyone wanting to learn from successful business stories, the history of Infosys imparts valuable lessons into visionary leadership, innovation, and the pursuit of excellence.

To help you track and understand the tech company’s rise to global dominance, our experts at Business2Community put their expertise to work to deliver a comprehensive account of Infosys history over four decades. Keep reading to uncover key milestones, controversies, and more.

Who Owns Infosys?

As a public company, Infosys LTD is owned by a combination of individual and institutional shareholders. As of March 31, 2024, Infosys’ ownership structure was as follows:

• Promoters/founders – 14.71% with Sudha Gopalakrishnan holding a significant stake of 2.57%
• Foreign institutional investors – 34.11% with J.P. Morgan and Chase holding a significant stake of 1.73%
• Domestic institutional investors – 35.92% with the Life Insurance Corporation of India holding a significant stake of 7.86%
• Public – 14.97%

In 1981, N.R. Narayana Murthy, along with six engineers:

• Nandan M. Nilekani
• Senapathy ‘Kris’ Gopalakrishnan
• S.D. Shibulal
• K. Dinesh
• N.S. Raghavan
• Ashok Arora

…founded Infosys with an initial capital of ₹10,000 or $250 at the time, donated by his wife Sudha Murthy.

Facing adversity such as financial and technological constraints as well as needing to obtain a license from the Reserve Bank of India (RBI), Murthy and the six co-founders split their operations between India and the US. This allowed the startup to provide software development and maintenance services to clients in the US and other international markets.

As the demand for outsourced software development services increased, Infosys experienced rapid growth, eventually launching its initial public offering (IPO) in February 1993.

Shares were listed at ₹95 or $3.11 at the time, with trading opening at ₹145 or $4.76 per share on Indian stock exchanges. As the market didn’t yet understand the concept of a software company (for good reason), the IPO was undersubscribed. Fortunately, the issue squeezed through with a bail-out from investment bank Morgan Stanley which picked up 13% of the equity.

In October 1994, Infosys raised ₹25 crore ($7 million at the time) by selling 550,000 shares at ₹450 to Foreign institutional investors (FIIs), Financial institutions (FIs), and corporations.

During March 1999, Infosys raised around $70 million or ₹301.65 crore by issuing 2,070,000 ADSs (equivalent to 1,035,000 equity shares of par value of ₹10 each) at $34 per ADS under the American Depositary Shares Program. These shares were listed on the NASDAQ National Market, making Infosys the first Indian company to do so.

Due to exemplary corporate governance, Infosys shares had a notable compound annual growth rate (CAGR) of 59% by the end of March 2011. Taking dividends totaling ₹26.4 lakh ($35,200 at the time) into account, Infosys shares had also appreciated over 464,422% in value.

On December 12, 2012, Infosys began trading on the New York Stock Exchange (NYSE) under the ticker symbol INFY. In 2013, the company began trading on NYSE Euronext, also under the ticker INFY.

Who is the Infosys CEO?

The CEO of Infosys is Salil Parekh, who has held the position since January 2018. Parekh took over from interim CEO UB Pravin Rao who was appointed in August 2017 following the controversy surrounding CEO Vishal Sikka and his abrupt departure.

With nearly three decades of global experience in the IT services sector, Parekh brought much-needed confidence and stability to the then-embattled company.

During his tenure, Parekh has prioritized client-focus and digital transformation, ushering in an era of revenue growth and profitability.

Vishal Sikka became the first non-founder CEO of Infosys in 2014. Despite a successful tenure, he resigned in 2017, citing malicious and personal attacks against him. Sikka’s allegations followed a year-long public feud where the company’s founders raised concerns about his pay package and the company’s $200-million Panaya acquisition.

Two years after the “Sikka shakeup,” Salil Parekh (appointed CEO in 2018) was accused of accounting malpractice and other unethical practices by a group of employees known as the “Ethical Employees.” He was later cleared of all accusations when the company’s Audit Committee found no evidence of financial wrongdoing or misconduct.

In October 2023, Infosys co-founder and former CEO N.R. Narayana Murthy came under fire for promoting a 70-hour work week to boost India’s economy. He later defended his controversial statement in January 2024, stating,

If anyone has achieved greater success than me in their respective field, regardless of whether it is related to mine, I would respect them and ask where I went wrong in making this statement.

Growth and Development of Infosys

Headquartered in Bengaluru, Infosys provides information technology, software development, business consulting, business process management, and independent validation services to companies in more than 50 countries.

The company does so through key products and services including:

• NIA – Next Generation Integrated AI Platform (formerly known as Mana)
• Infosys Consulting
• Cloud-based enterprise transformation services
• Infosys Information Platform (IIP)
• EdgeVerve Systems, which includes Finacle, a global retail and corporate banking solution
• Panaya Cloud Suite
• Skava (now Infosys Equinox)
• Engineering Services
• Digital Marketing
• Blockchain

1981-1990: Pioneering the Global Delivery Model

Infosys’ journey began in 1981 when it was incorporated as Infosys Consultants Private Limited by seven former employees of Patni Computer Systems.

The company’s very first client was New York-based Data Basics Corporation and in that first year, Infosys recorded an annual revenue of over ₹0.12 crore ($126,000).

In 1983, the company’s headquarters were moved from Pune to Bengaluru and the company worked toward achieving its Infosys 1.0 vision. This involved innovating and perfecting the Global Delivery Model first conceptualized by N.R. Narayana Murthy.

The Global Delivery Model was well on its way to becoming the new de facto standard by 1987. The company also realized its goal of expanding internationally with its first office in Boston, US.

1991-2000: Global Expansion and Listing on Major Exchanges

When major reforms transformed the Indian economy in 1992, Infosys’ revenue crossed the ₹8.66 crore mark ($3.3 million). Reflecting its ambitions to become a global tech leader, the company changed its name to Infosys Technologies Private Limited in April 1992. This was later updated to Infosys Technologies Limited when the company went public.

In February 1993, Infosys went public, raising funds to develop a campus for 1,000 people, along with state-of-the-art computing systems worth ₹16.58 crore.

The company also launched its employee stock options program (ESOP), and by March 31, 1992, employees owned 13.6% of the company shares. The ESOP, along with the 1998 ADR and 1999 scheme, gave stocks to over 18,000 employees, creating India’s first salaried millionaires. That same year, Infosys became the first Indian company to receive an ISO 9001/ TickIT certification.

In 1994, the company moved its corporate headquarters to Electronic City, Bengaluru, and opened a development center in Fremont. By 1995, the company had set up its e-business practice and opened its first European office in the UK, along with development centers in Toronto and Mangalore.

To provide critical support for education, rural development, healthcare, arts and culture, and destitute care, the Infosys Foundation was founded in 1996.

Global expansion continued with an office in Toronto, Canada in 1997. The next year, Infosys launched its Enterprise Solutions and packaged applications practice. This pushed Infosys revenue to an impressive $100 million in 1999. Other significant milestones throughout 1999 included becoming the first Indian company listed on NASDAQ and the 21st company in the world to achieve a CMM level 5 certification.

In addition to relaunching Banks 2000, its Universal Banking Solution as Finacle, the company established a presence in:

• France
• Hong Kong
• Germany
• Sweden
• Belgium
• Australia
• the US
• Canada

By the end of 2000, Infosys revenue had doubled to over $200 million.

2001-2010: Launching a Diversified Business Model

The 2000s ushered in Infosys 2.0, the company’s plan to leave its comfort zone and launch other service lines. In 2001, Infosys revenue hit a new high of $400 million, and it was rated the Best Employer by Business World/Hewitt.

2002 started with a major shift in leadership when N.R. Narayana Murthy, who had been CEO since the company’s inception, stepped down to take on the positions of Executive Chairman and Chief Mentor. Nadan M Nilekani, a fellow co-founder, was appointed as the new Infosys CEO.

Infosys BPM Limited, a wholly owned subsidiary of Infosys Limited, was established in April 2002 to provide integrated end-to-end transformative business process management (BPM) services.

In September 2002, Head of Sales, Phaneesh Murthy (credited for increasing Infosys revenues from $2 million to $700 million in under 10 years) resigned following charges of sexual harassment. Despite the blow to its operations, the company continued to expand, opening offices in the Netherlands, Singapore, and Switzerland, in addition to recently established locations in the UAE, Argentina, and Japan.

By 2004, Infosys revenue had hit a record ₹3,564.5 crore ($1 billion). The company had also officially started Infosys Consulting, a separate subsidiary dedicated to providing Infosys business consulting services.

The company was inducted into the Global MAKE Hall of Fame in 2005. The following year, Infosys celebrated its 25th anniversary, doubling its revenues to $2 billion and expanding its global workforce to over 50,000 employees.

2007 leadership changes saw Kris Gopalakrishnan, another co-founder appointed as CEO. By 2008, Infosys had doubled its revenue to over $4 billion and reported annual profits exceeding $1 billion. By 2010, the company had surpassed the $5 billion revenue mark.

2011-2020: Strategic Acquisitions and Record Revenues

To reflect the company’s transition from a technology services provider to a business solutions provider (dubbed Infosys 3.0), Infosys changed its name from Infosys Technologies to Infosys Limited in June 2011. Two months later, Kris Gopalakrishnan stepped down as CEO and co-founder SD Shibulal took over as CEO and MD.

In 2012, Infosys was listed on the NYSE and acquired Lodestone Holding AG, a leading management consulting services company based in Switzerland. The company was also ranked as one of the world’s most innovative companies and named among the top 25 performers in the Caring for Climate Initiative.

Infosys began trading on the NYSE Euronext London and Paris Markets in February 2013, giving European investors better access to its stock.

Following a civil suit accusing it of committing visa fraud by using B-1 (visitor) visas for workers requiring H-1B (work) visas, the company agreed to pay a $34 million settlement to the US Department of Justice in October 2013. At the time, this was the largest fine of its kind in US history.

In July 2014, Infosys launched EdgeVerve Systems, a subsidiary focused on enterprise software products for business operations, customer service, procurement, and commerce network domains.

In 2015, Infosys unveiled its analytics platform, Infosys Information Platform (IIP), and made several notable acquisitions including:

• Noah Consulting LLC, a leading provider of advanced information management consulting services for the oil and gas industry.
• Skava, a leading provider of Digital experience solutions for the retail industry.
• Panaya Inc., a leading provider of automation technology for large-scale enterprise software management.

2016 brought with it several key product launches, including Infosys Mana (now part of Infosys NIA) and Skava Commerce. Infosys also invested in:

• Waterline Data, a provider of data discovery and data governance software development.
• Stellaris Venture Partners, an early-stage venture fund.
• UNSILO, an AI startup focused on advanced text analysis.
• TidalScale, a provider of software defined servers.

In 2017, Infosys net worth was $35.5 billion and the company’s revenue exceeded $10 billion on an LTM basis. Additionally, HfS Research included Infosys in its prestigious Winner’s Circle of HfS Blueprint Report for Managed Security Services, Industry 4.0 services and Utility Operations.

In 2018, Infosys signed an advance pricing agreement (APA) with America’s IRS, enhancing the predictability of the company’s US tax obligations. This agreement led to a $225 million tax reversal and reduced the company’s effective tax rate by 100 basis points for future periods covered under the APA.

2020 – Present: Navigating Digital Transformation

In 2020, Infosys achieved carbon neutrality 30 years ahead of the Paris Accord and made several acquisitions including:

• Simplus, one of the fastest-growing Salesforce Platinum Partners in the US and Australia.
• GuideVision, a ServiceNow Elite partner in Europe.
• Kaleidoscope Innovation, a product design and development firm.

That same year, Infosys announced a strategic partnership with US financial titan Vanguard to transform the corporate retirement plan experience.

In 2021, Infosys achieved a significant milestone, surpassing ₹100,000 crore (approximately $13.5 billion) in revenue. This landmark year also saw the launch of Infosys Cortex, the company’s artificial intelligence (AI) first, cloud-first customer engagement platform.

2022 and 2023 brought further recognition for Infosys, with the company consistently being named one of the World’s Most Ethical Companies.

These years also marked more strategic acquisitions for the company, including:

• BASE Life Science, a leader in the life sciences and technology sector
• Oddity, a digital experience and marketing agency to bolster its operations in Europe and Northeast Asia.

In January 2023, Infosys and HMRC in the UK disagreed over a corporation tax bill of about £20 million ($25 million). The dispute was one of many ongoing tax issues the company had in a range of jurisdictions, including Australia.

Despite these challenges, Infosys was awarded the Global Top Employer 2023 certification in 22 countries across Asia Pacific, Europe, the Middle East, and North America.

By March 2024, the company had generated annual revenue of over ₹153,000 crore ($18.5 billion).

Additionally, Infosys maintained its top 3 position among IT services brands globally for the third year in a row, according to Brand Finance in its Global 500 2024 report. It also had the fastest CAGR in brand value in the IT services industry for over 5 years.

On May 7, 2024, Infosys announced that it had secured ISO 42001:2023 certification, the world’s first international standard on AI management systems. This made the company among the first IT service providers in the world to earn the certification.

As of May 2024, Infosys’ market cap or market capitalization was $70.69 billion. It had 85 sales and marketing offices, 114 development centers, and over 317,000 employees around the world.

History of the Infosys Logo

While the distinctive “Infosys” word mark, which dates back to the 80s, has remained largely unchanged, the brand has used various colors and taglines to highlight the company’s vision.

1996-2018: Powered by Intellect, Driven by Values

In 1996, the Infosys logo was updated to reflect the company’s ambitions to become a global brand. The wordmark took on the color to portray trust, quality, and consistency. It was accompanied by the tagline “Driven by values, powered by intellect,” reflecting Infosys’ new vision and identity.

2018 – Present: Navigate Your Next

Building upon business transformation being a journey, Infosys’ 2018 rebrand was centered around a core promise to help clients navigate their next. The distinctive Infosys wordmark was preserved and a new identity system was built around the logo.

The “I” in Infosys became a central feature of the identity system, representing navigating a client’s next.

Additionally, the distinctive typeface and photography supplemented the new identity, creating a modern look that captured Infosys’ reputation as a global industry leader.

2023: The Sound of Opportunity

In August 2023, Infosys launched the auditory equivalent of its blue visual identity and logo. The minute-long tune, termed the Sound of Infosys, was created to deepen stakeholders’ emotional connection with the brand and reflect the company’s ongoing commitment to creating opportunity globally.

The Future of Infosys

The history of Infosys highlights the importance of innovation and continuous improvement. In its constant pursuit of excellence, Infosys pioneered the Global Delivery Model.

This afforded the IT company distinct competitive advantages such as cost efficiency, access to global talent, scalability, and flexibility. Additionally, Infosys’ commitment to innovation and delivering value to its clients have remained crucial elements of its growth and success.

Going forward, Infosys plans to take the AI-first approach to its own transformation by leveraging the power of AI, analytics, and cloud computing to:

• Build incremental value from micro-changes
• Improve client service
• Reimagine its business processes
• Boost productivity

As companies focus on cost efficiency and digital consolidation, Infosys wants to become their trusted digital transformation partner. The global IT leader also plans to strengthen its leadership position in GenAI and facilitate the deployment of more impactful AI use cases across enterprises.

With over 12,000 AI use cases and 150 pre-trained AI models ethically accelerating business value for global enterprises, Infosys is well on its way to doing so.

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