N.R. Narayana Murthy used to tell us right from the early days after the IPO that while we might not be the biggest company, we should set standards to be the best. It was that ambition that made us set standards in many areas.
When we went public in 1993, India was a different country. The quality and governance standards were lax. There was a chalta hai attitude in the approach of most businesses. This was because of the over 40 years of the licence-quota raj. So, like a tiger that was caged for a very long time and enfeebled, the industry took time to come out of that mindset. But at Infosys, we were very clear that we wanted to cater to the global market, and we had to adhere to the best international standards.
It started with quality standards for software as we became among the first IT services companies to get the ISO 9001 standards, the CMM Level 5, the gold standard for quality. We put in place high-quality standards for all our work. All projects were monitored. We set up a rigorous process to train our people, and we created an environment that ensured we maintained quality. NRN often told us that we live in a third-world country with poor infrastructure, but we need to deliver the highest quality to our clients in the first world. The entire concept of quality is an attitude of mind.
As part of this, we built world-class campuses, including the country’s largest corporate training facility in Mysuru. In each of these campuses, we ensured a state-of-the-art globally benchmarked workplace with all facilities for work and leisure. This rewarded us well. When clients visited our facilities, they were delighted. In fact, we got a 10% premium over other companies.
After we went public in 1993, we held the first investor meeting in October 1993. This was a seminal moment as this set the stage for other companies to also start doing quarterly analyst calls. We were the first company to give both quarterly and annual guidance and help investors and analysts know better how the company was planning to grow. We were again among the first companies to set up a high-powered board with a lead independent director. We started announcing results within 15 days of the close of a quarter, setting the standard for other companies to follow.
We were among the first companies to start giving employees stock options, creating many millionaires, including service staff, in an egalitarian manner. This made us the best employer in India, showing that to grow, we need to put people first.
After our successful listing in India, we also got listed on Nasdaq in 1999. Our intent to get listed in the US was for strategic reasons. Since we were delivering to US clients, we wanted to enhance the confidence of our customers. A listing in the US enhanced our credibility. We needed a currency for acquisitions and dollar stock options to attract great talent.
A lot of credit goes to N.R. Narayana Murthy, an extraordinary leader who set an example for others to follow. He led by example. I still remember how he was always the first to be at the office and was the last to leave.
What drove Infosys to do all this? The innate desire to be among the best in the world and earn respect from all the stakeholders—employees, clients, vendors, shareholders and the government.
At Infosys, we always had a policy that, when in doubt, disclose. This was because everyone should have the same information.
Infosys was always humble in accepting mistakes. Back in the mid-90s, we invested in primary markets, and we lost money. We went before shareholders and apologized and told them that to correct this; we were putting a treasury policy to ensure this does not happen again. When a sexual misconduct case was reported against a very senior executive, we promptly asked that senior member to step down. Back in the early days, when a very large client of ours that accounted for about a fourth of our total revenue did not renew its contract with us, we first communicated to the Street immediately.
I believe five business leaders have defined the Indian industry. J.R.D. Tata for setting up a giant industrial business in the country after independence. Dhirubhai Ambani as he showed Indians how to scale on a global scale. Mukesh Ambani because he brought in India-level digital architecture and scaled it to empower every Indian. N.R. Narayana Murthy brought global respect for India by building a knowledge-based company through Infosys that eventually put India on the global software map and set standards for corporate governance. Finally, Nandan Nilekani created digital public goods at the India scale through Aadhaar, UPI, ONDC and AA, which have become the foundation for the government to deliver services to all Indians. Among all of these, NRN and Infosys truly created respect for India globally.
Infosys is a unique phenomenon in India, powered by values and driven by excellence.
The writer is a former Infosys board member.
(As told to Varun Sood.)
