World of Entrepreneurs: Infosys Mentor (Continued)

As a continuation to the new section of this blog, The World of Entrepreneurs, I would take forward the lessons from the life of Mr. Narayana Murthy.  The second and third most important events in his journey of entrepreneurship were the challenges he met during the early days of Infosys.

As he recalls, in his speech in New York University, it was the day when all the Infosys partners met to discuss upon an offer to sell out Infosys for $1Million. All the partners were convinced that this is the offer they were waiting for and that they would not let this opportunity go without making any money. The scenario, as Mr. Murthy describes, was such that in the small office room they all were sitting and one by one sharing their views. Mr. Murthy was the last speaker. He waited for his turn patiently and when he started, he made a stunning offer to buy out his companions himself, even when he didn’t have a single penny to do so.

There was a stunning silence in the room as if people were thinking how they should react to this foolish offer. But, Mr. Murthy broke the silence by recalling the early days of Infosys, their small office and their collective struggle to bring them here where they are today. He was of the view that to create a big company they should all be confident and optimistic and that they should not go for offers of some millions to sell it. He was confident that collectively they have a capability of creating a company which is a thousand times bigger than the petty sum of $1Million. He recalls that even if he didn’t knew at that time that Infosys will become so big after a decade or so, he had the confidence that this offer was for sure not the best way to go. He finally convinced all his partners and thus gave a new birth to Infosys.

Market capitalization of Infosys today is $28Billion which comes out to be 28,000 times more than the $1million offer they were given that day. He proudly says that this is the result of the promise his partners had made to him and he is glad that all of them had lived up to it.

The last story goes back to the summer days of 1995, when one of their major clients (contributing Infosys’s 25% income) called all the Indian vendors for a re-evaluation of contracts. It was an aggressive exercise of filtering the unsuitable vendors as per the client’s standard. They were minnows amongst other vendors the corporate had invited. During the interviews their reasons to show Infosys as the best and to justify their product prices were in vain. Finally when the choice was left for Mr. Murthy either to take up the offer or to reject it, by accepting the odd terms of the customer, he clearly told them that they would not be able to accept the terms as the corporate was are trying to make them what they are not and this may lead to an unsuccessful venture.

However, he suggested, that they could come to common point where none of the interests are compromised, which will lead to an efficient collaboration. This was in fact the turning point in the history of Infosys. Moreover, after this Mr. Murthy formed a separate risk analysis department which would ensure that they do not depend so much on any one client as they did this time. The action he took learning from the incident had positive effects and today Infosys is not much depended on a single corporate or client for its income.

Finally, Mr. Murthy urges all to take lessons from life and take actions according to these learnings. Being confident and courageous is the first and foremost requirement for an entrepreneur.  You have to be consistent and keep the fire burning inside which will drive you towards success. Everything else, he says, is not of much worth in life, not even money. He is of the view that after being successful we should share the wealth with the ones less fortunate. I would leave you with a remarkable saying by Mr. Murthy which clearly defines what makes a Successful enterprise.

“Performance leads to recognition. Recognition brings respect. Respect enhances power. Humility and grace in one's moments of power enhances dignity of an organization”

Think out of the System. Think more than what your daily job can make you think. Life can’t be same all the days otherwise it’s not life it’s like stagnant water, and even stagnant water stinks after days. Good Luck and Happy reading!!

Post-script: Mr. Murthy has authored one of the best books in Indian History “A Better India, A Better World”. Do get this one to read.

Thanks!!