Transcript of LIVE Chat with N R Narayana Murthy

N R Narayana Murthy
Transcript of LIVE Chat with Chief Mentor of Infosys, N R Narayana Murthy on 10 September 2007 from New Delhi.

“Every other Indian company can challenge Infosys”

NR Narayana Murthy
Chief Mentor of Infosys

NR Narayana Murthy > It’s a great pleasure to participate in this chat with the ET/ TOI/ Maharashtra Times and Nav Bharat Times, online users. I am amazed at the power of this online network and the value it brings to the country.

Abhishek Goel > Don't you think we are taking China and other emerging nations too lightly as far as IT sector is concerned? Should we need to take steps that will continue to lure foreign companies to India?
NR Narayana Murthy > I believe we should take every one of our competitors and potential competitors seriously. This we can do by enhancing our infrastructure including the education infrastructure and creating an environment of warmth for our customers and prospects.

Ritesh Verma > I've always wanted to know if one has to have business sense first to start a venture or does one acquire it over time? Did you always want to start up something like Infosys and prepared for it the way you did or did you do it instinctively?
NR Narayana Murthy > Most momentous decisions in life are taken on the spur of the moment. Like your education, the girl that you want to marry or the job that you want to take up. However, the choices are created by your preparedness and the environment. In my case, my experience in Europe taught me that the best way to solve the problem of poverty in India is by entrepreneurship and creation of jobs. That is why I took it up.

Biswajit > Why is Infosys centered only in West and South India (apart from one centre in Chandigarh)? North and East India had been bases of big companies for quite sometime. Does this figure in Infosys' plan sometime down the line? No, we have operations in Chandigarh, Jaipur and Noida in North India.
NR Narayana Murthy > We have operations in Bhubaneshwar in Eastern india. We'd be happy to start operations in more and more North and East Indian cities.

S Ghosh > Dear Mr. Murthy, How does one cope if one feels down and out in the IT profession?
NR Narayana Murthy > Lets all remember that compared to the poor people of India, we are the blessed ones. Our problems are nothing compared to them. So I always think of how kind God has been to me whenever I am down.

Pradeep Kumar > Dear Sir, India's recent economic development has been commendable thanks to government economic liberalisation. Though as an Indian I feel proud of the recent economic success, however, what hurts most is red tape, bureaucracy. How do you suggest ways to fight that?
NR Narayana Murthy > We have to create a system of meritocracy and incentives in our bureaucracy. Then I am sure they'd perform as well as anybody in the private sector.

Geo > Respected Mr Murthy, during the end of the 90's how did you market your software and services abroad? I assume during that time neither India nor Infosys was popular in the West as a reliable IT resource. What was the strategy that you adopted?
NR Narayana Murthy > Our initial strategy was excellence in execution. We leveraged the fact that the quality of our software and the On Time completion of our effort was of the highest order.

Vincent > Mr Murthy, I would like to know the scope for a commerce background person in software field, what are the opportunities available?
NR Narayana Murthy > In fact, majority of opportunities in the application area in software is for people with commercial background with an algorithmic bent of mind. So, as long as you are comfortable in logic, you have tremendous opportunity.

vks_urdisciple > Respected Sir, you are a role model to thousands of people but who is your role-model
NR Narayana Murthy > It’s clearly Mahatma Gandhi since he walked the talk and led by example.

Deep_01 > According to you, what can be the factors which can propel Infosys in the league of international big players?
NR Narayana Murthy > First, becoming more multi-cultural. Second, providing better and better business value. And third, creating better brand equity.

Ramesh > Sir, I agree that, as a Software Service Provider like Infosys, you have compulsion with the clients you are working with for not to develop products competing with the clients. But, how long one can run a service company? Is it not a good idea to have a product which can be proudly labeled as “Made in India” or “Made by Infosys”;. What is holding back you or any software services industry?
NR Narayana Murthy > We already have Finacle - the No 1 banking product in India. This has been installed in 35 Plus countries. As we move forward, based on our preparedness, we will definitely look at your suggestions for products in other areas.

K V Ramadoss > suppose you became the Prime Minister of India, what would be your priorities? How will you handle the reservation policy?
NR Narayana Murthy > That is very hypothetical question. However, let me answer it. I would focus all the governmental efforts on address efficiently the issues of education, healthcare, nutrition and shelter for the poor, while providing an absolutely free space for entrepreneurs to create more jobs to enhance exports and to create greater wealth.

Aamir > Hi, Do you see in future whether the Software industry be able to provide service sector to the field agriculture in countries like India.
NR Narayana Murthy > I believe currently there is no technology to suffice that. There are several applications that can enhance the productivity of the agricultural sector. However, we have to ensure that there is a financial mechanism for our farmers to leverage the power of these applications.

jyan > what do u attribute secrets of your professional success?
NR Narayana Murthy > I am not sure I can say we at Infosys have achieved any great success. However, we believe that hard work, smart work, a good value system, long term orientation and focus on innovation and finally openness to new ideas and meritocracy are the key ingredients for becoming better and better.

Abhay > What is your message for young entrepreneurs?
NR Narayana Murthy > We are at a historical juncture in the history of this country. For the first time in 300 years, India has received respect, attention and admiration. This is the time to consolidate on the small success we have had by working hard, by following discipline and by putting the interest of the country first in everything we do.

Rathin Vora > Do you think Indian software professionals are better than American tech professionals? If so, then in which areas do they score? Where do they lag? Is there any company in India which can challenge Infosys?
NR Narayana Murthy > I believe that there are good professionals in every country. However, since the US is at the leading edge of technology, the software professionals there have more and more opportunities to use advance technology first compared to us. Being a highly developed country, the software professionals in the US generally do not see the need for hard work as much as our Indian software professional’s see. I believe that every other Indian company can challenge Infosys as long as they are more innovative, and they are better customer focused than us.

Krishna Prasad > Sir, as you know investment in equities gives best returns in the long term. I want to know your investment portfolio, and your favourite sectors apart from software? Do you invest through mutual funds or directly?
NR Narayana Murthy > I must say that my main investments are in Infosys which happened when we founded the company. I am not an expert in stock market, hence am not the right person to answer this.

Padmanapan > Hello Mr Narayan .I am Padmanapan studying in Pune. My question is related to political system of India. It seems impossible to curb the dirty minds entering in politics. So under such circumstances what should be the role of youth, since they get discouraged by sub standard political system?
NR Narayana Murthy > The youth must stand up for their beliefs by vocally supporting good politicians and by voting them to power. Second, they must conduct themselves as good citize4ns of this country.

Hello > Hello Mr.Murthy, How long do you feel this boom in IT industry in India continue??
NR Narayana Murthy > I believe that we are still in the early stages of the IT revolution in the world. Hence this will continue for quite some time.

rahulverma1980 > respected sir my question is that if someone is having enough knowledge of sales and marketing is it necessary having an MBA degree for having a job in a reputed form like Infosys..?
NR Narayana Murthy > Not necessary. In fact, out of the 70,000 or so employees at Infosys, not more than 7,000 would be MBAs

venkat > Dear Murthy Sir, So far the IT industry has done extremely well, however the talent crunch and the reducing quality in the people is creating a big concern to clients. Is the entire industry acknowledging this? Any tips to work out this issue?
NR Narayana Murthy > We have reaped the benefits of the extraordinary vision of Jawaharlal Nehru. This is the time for our Prime Minister to enhance the quality and the quantity of higher education system in the country. Else, we may regret it 20 years from now

Deepak > sir what do u think about FBT provision on ESOp.dont u think it is very harsh on Companies Since
NR Narayana Murthy > > I don't have full data on that; I am not in a position to comment on it.

Vinod Vasanth > what are the basic tips for handling customers
NR Narayana Murthy > Openness to understand customers' problems, a mindset to enhance business value to the customer and behaviour that creates trust in customers' minds.

123 > One interview you have mentioned that, you have still has to pay some amount for your wife which you have bought from her at your difficult time.. can you explain more about that.
NR Narayana Murthy > My part of the equity in Infosys was borrowed from Sudha and she paid for most of our expenses in the initial years

shimo > Do you think our education system is capable of producing leaders? If not what changes should be brought in ?
NR Narayana Murthy > We have produced extraordinary leaders like Nehru, Patel, Shastri, Vajpayee, Manmohan Singh, Chidambaram, Montek Singh and many others. I believe that it is capable of producing good leaders.

drquery > By recruiting talent who are not necessarily from IT background by attracting them with good salary packages, don’t you think the IT sector is weaning rest of the industry sectors from much required resource supply?
NR Narayana Murthy > Yes, I agree with you. However, the solution is to produce more and more engineers in every sector of the economy so that there will be enough talent not just for IT, but all other branches of engineering.

Laurel > You took 26 years to built a company like Infosys what it now. What should i do to build a company like this in 8 to 10 years time?
NR Narayana Murthy > Work harder, smarter and have solutions that have better business value to the customer than we did.

Chethan > Mr. Murthy, by the end of the year 2010 do you think India will free from poverty?
NR Narayana Murthy > I don't think so. I would very much like India to be free from poverty but that will happen only if we have good political leaders, efficient bureaucrats and well-meaning corporate leaders.

Laurel > You took 26 years to built a company like Infosys what it now. What should i do to build a company like this in 8 to 10 years time.
NR Narayana Murthy > I have always regarded respect as the most precious item for me. I know that it is along journey to deserve respect from the society. I am still in the initial stages of this journey.

vks_urdisciple > What do you think was your best business decision?
NR Narayana Murthy > Clearly, requesting 6 younger colleagues of mine to join me as co-founders. If I have to do this exercise again, I would go with the same 6 plus a few other extraordinary leaders at Infosys.

raghunandan > Hello Sir, Software majorsn like Infosys are recruiting thousands of people every year . Don’t you feel, with such a large workforce, there is a fear of stagnation as far as career of an individual is concerned. Also due to the number of people leaving the company every year , which is not ideal
NR Narayana Murthy > We recruit people based on the market needs and our ability to sustain productive employment for these people for a certain number of years. While attrition is clearly an issue, I accept the dream and aspiration of every young man and woman to better their prospects wherever they want. every person that has been an Infoscion even for a short period will always remain our friend and is most welcome to come back or visit us for a lunch or a coffee.

prasanti > hello sir...i m student of textile engineering and want to switch 2 software...what d u advise me 2 do?
NR Narayana Murthy > As long as you have algorithmic thinking and are strong in logic, you can always become a good software engineer.

shimo > Which is your favorite author ? Any book you consider crucial in your success?
NR Narayana Murthy > I read popular physics and popular mathematics for my recreational purposes. Clearly, feynman lectures trilogy is my favorite book. I frankly can’t think of any book that i can point to as my business experience.

PANKAJ > among new entrepreneurs who have impresses you
NR Narayana Murthy > Certainly I think Sunil Mittal, then Kishore Biyani, the founders of On mobile, have all impressed me.

shreyasanjeev > respected sir, please define the vision of india for coming five years on economic front
NR Narayana Murthy > Our challenge will have to be to provide basic education, healthcare, nutrition and shelter to every Indian child.

bhaskarswapnil > Dear Sir, I am a 4th year student at IIT Kanpur in the Computer Science Department. Many here believe Indian Industry requires only technicians and not IITians. DO you think Indian industry requires IITians?
NR Narayana Murthy > Where and as who? In Infosys we believe that software engineering is extremely crucial to our success. Hence, IITians are very important for the success of this industry.

Muhamad > Hi, I am the owner of a small technology firms, what’s the best way to grow on in business when you have limited resources and maximum opportunities and how one can balance all of this to build a sustainable growth part.
NR Narayana Murthy > Focus on an idea that is simple in business value to the customer, create a team of complementary strengths and common value system and make sure that you work hard and smart.

Bhalchandra > Dear Sir, What measure do you suggest to improve the quality of Software engineers (fresher’s)?
NR Narayana Murthy > Since quite a few times it is said that the fresher’s are not up to the mark Focus on algorithmic thinking, generic learn-ability, discipline and hard work.

Jimil > What do you think about multinationals coming to India like walmart and Tesco, they have affected small retailers in UK and USA (They have nearly finished them), don't you think same will happen in Indian vast small retail industry?
NR Narayana Murthy > I believe that economy of scale, technology and innovation add value to the large number of consumers in the country. While it is true that it may displace a section of the mom and pop stores, in the interest of the large no of consumers, i would welcome such large stores as long as we can provide decent employment to the small shop owners.

Mohan > What is your suggestion to manage our time (personal, professional life). How do you manage your time between these two?
NR Narayana Murthy > Right from my childhood, my fatehr insisted on me having a time table, allocating time based on priority. I believe this is the best solution.

91985 > Murthy Sir I like 2 develop own software company like as Infosys
NR Narayana Murthy > Best wishers for you. May you succeed since India needs more and more people like you.

VijayMehta > Dear Mr Murthy, A lot has been written and said about the success of Infosys. I am sure there would have been incidents and obstacles, Infosys as a company and you as one of the founder members would have faced. Can you please share one such incident?
NR Narayana Murthy > It took us more than a year to get a telephone connection in 1982 and we lost a huge project because of that.

Dileep > Do you think, by any means, that the corruption in India can be lowered down in near future?
NR Narayana Murthy > Only if we have enhance transparency and if we our leaders lead by example.

lalit > Mr Murthy, can you please write an article informing people how to raise kids?
NR Narayana Murthy > I want my daughter to be good in what ever she does but then your experience will be very valuable to raise her. Probably, my wife should write it since she has been responsible for raising both the kids with a good value system.

Aditya > India is officially, centrally known as IT center of world. Why doesn’t India invest in creative fields like MEMS, semiconductor which need good brains (which we already have) and which will add thousands of opportunities to upcoming talent in India.
NR Narayana Murthy > I have discussed this issue with Dr Murli Manohar Joshi as well as with Dr Manmohan Singh. Is is our PM who has to take this decision.

rahul > Dear Sir. I am very happy to see you in the forum. You are the role module of young people. My question is & quot; what are the steps do u taken to bring rural educated people to come main stream. They have all the quality except English. so what ur step to comedown this problem.
NR Narayana Murthy > Thanking you I am very happy that karnataka government has started a finishing school for qualified candidates who are weak in English. Similarly, Infosys has conducted special camps for rural youngsters to help them with English. We have to scale this up.

Swamy > Dear NRN, How do you see Infosys growing from where it is currently with the change in leadership?
NR Narayana Murthy > With a management structure in place along with business units across key vertical and IBUs, what do you see would be the role of the CEO, COO, CFO, CHRO As we move forward, there will be more and more decentralization of power and each IBU should be run as an independent unit with its own balance sheet

sakthi > what will be the next big revolution just as IT?
NR Narayana Murthy > I believe it will be clearly Bio-technology, nano-technology and embedded systems as applied to appliance computing.

tejas > In Infosys, What do you do when you have to make a hard decision?
NR Narayana Murthy > We sit, discuss and debate for a fixed amount of time and then the leader takes the decision after considering all points of view.

sudhirtaori: > whats your opinion on e governance?
NR Narayana Murthy > E governance is extremely important for a poor country like India since it enhances transparency, reduced corruption, improves efficiency of governmental services.

visky > When compared to other industries why are It people paid more?
NR Narayana Murthy > In the free market philosophy, whenever demand exceed supply, prices go up. That is the reason.

Manu > can you please answer my question on how you started Infosys?
NR Narayana Murthy > I have always wanted to be an entrepreneur ever since I spent some time in Europe. So, in December 1980, I decided to take a plunge and that is when one of my colleagues wanted to join me and I invited 5 other youngsters. That is how Infosys was born.

Sunnyvale > Will opening offices in China by some Indian IT companies, affect the progress of India?
NR Narayana Murthy > Not really, because, at this point of time, the market opportunity is enough to leverage the talent of both India and China.

Nishchaymhatre > Respected Sir, in your opinion what was Infosys's greatest moment till date?
NR Narayana Murthy > There are many, like getting listed on NASDAQ as the first Indian company, our first customer, our first campus, initiating our stock option plan, etc.

maheshgupt > How can senior IT professionals , opting for VRS , contribute for upliftment of IT in India?
NR Narayana Murthy > By participating in enhancing IT literacy in their own cities or towns, particularly for children from the poorer sections of society.

amitkumar_india > Many of highly talented Indian engineers are going abroad for better jobs. What can be done to retain them in India?
NR Narayana Murthy > First of all, I believe that a certain percentage of our youngsters must go abroad, contribute to those societies and conduct themselves as model citizens of those societies. This will enhance the image of India. On the issue of attracting them back, we have to create an environment where it is easy for them to commute to their offices. It is easy for them to send their children to good schools and it is easy for them to lead a decent quality of life.

Sonia > Was there any time in life when you felt that you will not be able to achieve your goal?
NR Narayana Murthy > There have been many times. For example, when we were refused loan to import a computer, when it would take us 12 to 14 days to get permission to travcel abroad, when we could not get telephone lines even after a year and lost a huge project, etc.

javeed > Mr.Narayan Murthy when you along with a handful of your colleagues started work in one small house in Koramangla did you have any idea or confidence that one day you would attain and achieve what you have achieved today for yourself and the county.
NR Narayana Murthy > Not really. However, right from day one, we focused on receiving more and more respect from every one of the stake holders. I believe that we are moving along reasonably well on that target.

avkrishna > do you think that the demand for IT still remain for at least 20 years?
NR Narayana Murthy > I believe that the world is still in its early stage in leveraging the power of IT, particularly when you consider two thirds the population of this world (in the developing world) has not at all leveraged the power of IT.

Sharad > How would you explain the wide divide(in basic facilities available, like roads/education/electricity etc) that exists between urban and rural areas or even between states in India when if you see countries like US, even the smallest of village at least has basic amenities?
NR Narayana Murthy > It is just that in a developing country like India, our resources are limited and we have used outdated ideas and sibboleths. The day our leaders realize the importance of entrepreneurship and creation of jobs, and the power of entrepreneurship in creating infrastructure, I believe we will sort this problem.

Ashwani > what is your opinion on the sustainability of the GDP growth in india and what is the perceived contribution from IT Sector
NR Narayana Murthy > I believe that we can continue to grow at 9 to 10 per cent for at least 20 years since China has done it for the last 20 years. At this point of time, the IT sector contributes about 4 to 5 per cent of the GDP. I believe that we can take it to about 10 per cent if we work hard.

Anand > Currently we have seen there huge number of recruitment happening across companies, what do you think out quality vs quantity?
NR Narayana Murthy > I believe that the quality of the intake is slowly deteriorating. it is not the fault of the youth but that of the system. That is why we, at Infosys, have started many initiatives to enhance the quality of our training.

DarwinLloyd > You took 26 years to built a company like Infosys what it now. What should i do to build a company like this in 8 to 10 years time.
NR Narayana Murthy > To make this possible i need more input (tips) from you sir. Openness to new ideas, meritocracy, speed, imagination and excellence in execution will help you progress faster than Infosys.

sudhirtaori > Do you hate people who make spelling mistakes?
NR Narayana Murthy > I do, however, I am not used to typing so fast.

kukuananda > Driven by values is your slogan. What are these values????
NR Narayana Murthy > Focus on the customer, leadership by example, integrity and transparency, fairness and excellence in execution.

role_model > am a fresher......should i get experience to become an entrepreneur
NR Narayana Murthy > If you have a clear idea which adds business value to the market, then you dont need an experience because entrepreneurship is all about a powerful idea, a team with complementary strengths, an enduring value system, passion, commitment and sacrifice and finally a great dream.

samyukta > Sir, who thought of the name Infosys... and Why Infosys?
NR Narayana Murthy > I must confess that I thought of the name Infosys. Infosys is the acronym for Information Systems, which is our business.

Sen > Dear Sir, Your opinion on software professionals who are changing companies very often for better position/Increment in their salary/Higher role etc?
NR Narayana Murthy > I believe that it is the right of every individual to choose the organization that he or she wants to work for.

Kunalks > Sir - Do you see any mergers/consolidations happening between the various Indian IT services and Solution companies in near future?
NR Narayana Murthy > I do not have a crystal ball. However, it is difficult to imagine the big 3 coming together.

nusrath > Sir, what did you mean when you recently said that we need to boost productivity to cut the losses that IT companies are incurring because of the appreciating rupee?
NR Narayana Murthy > What I meant was we have to enhance our work productivity, which means we have to increase our revenues with the same number of staff by doing more work in the same time period.

shital > Resp sir. Do u think that we are better than china?? or is it just because we are better in the language English ?
NR Narayana Murthy > China is clearly demonstrated their success in growing their GDP faster than India, in enhancing their export better than India and in creating a much larger no of jobs than India. I believe we have many lessons to learn from China.

Sophia > What is your advise to women entrepreneurs in the IT industry?
NR Narayana Murthy > I believe that we in India have to encourage women entrepreneurs much more than we have done. This requires policies that are beneficial to women and that help women become entrepreneurs while discharging important duties as mothers

Pratham > How much of a threat is rupee appreciation vis-à-vis dollar in the long term for IT industry in India?
NR Narayana Murthy > I do not believe in the Dollar Rupee exchange rate as a threat because this is a macro economic factor and no individual company can control it. Why worry about an issue over which we have no control, while we have hundreds of issues that we have to solve and over which we have control.

NR Narayana Murthy > This is an issue on which only the US government and the citizens of US can comment. We, the Indian companies have to grow our businesses successfully while operating under whatever constraints exist in our market place

Sign off Message > Folks, it has been wonderful participating in this chat. I am extremely grateful to all of you and to my friend Mr Rajesh Kalra for this extraordinary opportunity. I will sign off now. Thank you.

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