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Strategic Hrm in Infosys

In: Business and Management

Submitted By anyasr
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REV: OCTOBER 16, 2006


Infosys (A): Strategic Human Resource Management
How do you feel when you look around and realize that 80% of your colleagues have been in the company for less than 24 months?
— an Infoscion
On November 13, 2003, the HR leadership team led by Hema Ravichandar, head of human resources for Infosys Group, left the conference room with a mixture of excitement and apprehension; a feeling that, they decided dryly, was familiar after a strategy meeting with the chairman and chief mentor of the Infosys Group, Narayana Murthy, and the CEO, Nandan Nilekani.
The cofounders had set a new and aggressive milestone for the HR group, the latest in a long line of challenging goals that had been set for them. By 2007, the cofounders wanted HR to ensure that
Infosys was on the Top Ten lists of both Best Performing companies and Best Employers. It sounded innocuous enough to an outsider, but this HR team knew better. To the best of its knowledge, no large organization had ever been able to achieve this distinction because of the tension inherent between the need to control costs for financial performance and the spending required for employee satisfaction. As the team walked back from the meeting, they were reminded of the painful and humbling experience in 2003 that had made Infosys sharply aware of the difficulties ahead as it transitioned from a small to a large company.
The decade since Ravichandar joined Infosys in 1992 had been a heady one for both the Indian software industry and Infosys. From March 1993 to March 2003, Infosys had a compound annual growth rate of 65%, and its revenues had jumped from US$5 million to US$754 million (Exhibit 1).
As it had grown, it had added people at an equally impressive rate, from 250 employees in 1992 to over 15,000 in 2002.
Infosys had always recognized that its...

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