The Outsourcer by Sharma Dinesh C

Author:Sharma, Dinesh C. [Sharma, Dinesh]
Language: eng
Format: epub
ISBN: 978-0-262-52812-2
Publisher: MIT Press
Published: 2015-07-03T05:00:00+00:00

Figure 6.1

Infosys cofounders (left to right): K. Dinesh, Nandan Nilekani, N. S. Raghavan, and N. R. Narayana Murthy; two others—Kris Gopalakrishnan and S. D. Shibulal—are not in this undated picture. All the founders of Infosys earlier worked for Patni Computer Systems, which was initially a reseller for minicomputers of Data General and later got into writing software solutions for Data General customers in India. Courtesy: Infosys Limited

While at PCS, Murthy’s team of programmers had gained the experience of working on software package CAMP. The DBC contract with Infosys was to expand the functionality of CAMP and ready it for re-hosting on Data General’s 32-bit Eclipse MV/8000. But Infosys did not have a Data General computer to work with. It had no money to buy one or necessary office space to install such a system. In addition, importing the system could take several months. Infosys did not even have a landline telephone connection. As a way out, DBC suggested that Infosys execute the project at its U.S. office. All Infosys founders, except Murthy, went over to New York to work on DBC computers—in the phenomenon mentioned in chapter 4 dubbed “body shopping,” which was to emerge as a dominant model of software exports. Infosys dabbled in hardware too, through its little known subsidiary Infosys Digital Systems, but soon gave up to focus on its core strength—programming. The DBC deal lasted six years. After Infosys, DBC outsourced software services from other Indian firms like Mafatlal Consultancy Services, part of the Arvind Mafatlal group in Bombay, which specialized in developing software for the textile industry.

A few years later, claims relating to CAMP became a point of dispute between Infosys and DBC. In August 1988, DBC countered the claims Infosys made in a trade magazine that it had “developed” CAMP for the U.S. apparel industry. DBC clarified that CAMP was its registered trademark and copyrighted product and that Infosys had only provided support services to customers of DBC for CAMP under contract with DBC.11 It also claimed that it had advanced money in 1981 to help fund Infosys and for several years it was the only customer of Infosys. DBC accounted for nearly 60 percent of Infosys’s revenue even in 1988. It was under the contract signed with DBC that Infosys was hired to provide technical services to Reebok and Jockey. Infosys admitted that the copyright of CAMP as well as the related software developed for garment makers belonged to DBC, but it denied that DBC had helped Infosys with capital funding in 1981.

When Infosys signed up its first major customer in the domestic market, Motor Industries Company Limited (MICO) in Bangalore, it decided to shift its base from Poona to Bangalore in 1983. Infosys acquired its first computer—the Data General MV/8000—in February 1984 and installed it at MICO. The computer was used for MICO data processing and for software development for other customers of Infosys. The data processing ensured a steady flow of revenue. Banks had refused Infosys a loan to buy this computer.

Download

Copyright Disclaimer:
This site does not store any files on its server. We only index and link to content provided by other sites. Please contact the content providers to delete copyright contents if any and email us, we'll remove relevant links or contents immediately.