Infosys: Summary
In 1981 Narayana Murthy and six colleagues established Infosys with $250; it is an organization created for professionals by professionals that promised to be fair to its “infoscions” (employees), customers, and shareholders (Delong, 2006, p. 1). The company’s overall vision was to become a “global company” that developed wealth in an honorable manner by redistributing funds to the poor and provide fairness to all (Delong, 2006, p. 3). Infosys worked in the information technology (IT) market via several strategies, body-shopping and offshoring; however; it turned out creating problems than the company planned for which caused a chain reaction of more problems before management finally realized they “fell from grace” (Delong, 2006, p. 10). Therefore, the following paragraphs summarize and analyze Infosys (A): Strategic Human Resource Management written by Delong, Tandon, and Rengaswamy as it relates to Strategic Human Resource Management (SHRM).
Case Analysis
When Infosys first opened its doors, their strategy known as bodyshop was increasing their labor costs due to the U.S. government limiting distribution on B1 Visas per year. Body shopping is a form of outsourcing in which Infosys recruits IT students straight out of college, place them with clients on project-based assignments until completion (Delong, 2006). Once completed workers are either placed on another project or benched to wait for a new assignment (Darwish, et al., 2010). This is similar to what we, as Americans call sub-contract or contract work; it is done to harness the benefit of low labor cost. During the 80s the company faced another issue; here in the United States some Americans take it for granted – freedom. Infosys did not have any freedom; the company had to face the bureaucratic government to obtain a computer, a telephone line, permission to travel abroad, and