N. R. Narayana Murthy

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Nagavara Ramarao Narayana Murthy (born August 20, 1946), commonly known as N. R. Narayana Murthy or simply Narayana Murthy, is an Indian billionaire businessman who co-founded Infosys, one of the largest and most important information technology (IT) services companies in the world. Often called the "father of the Indian IT sector," Murthy played a key role in building India's technology industry and establishing the country as a global hub for IT services and outsourcing.

Under Murthy's leadership as CEO from 1981 to 2002, and subsequently as chairman until 2011, Infosys grew from a company started with $250 in seed capital to one of India's most valuable corporations, worth tens of billions of dollars. The company pioneered the Global Delivery Model for IT services outsourcing from India, establishing a template that transformed the global technology industry and created millions of jobs in India.

As of January 2025, Murthy's net worth is estimated at $5.0 billion, according to Forbes. His influence extends beyond business into Indian public life, where he has been a prominent voice on issues ranging from education and corruption to entrepreneurship and economic reform. In 2024, his public profile was elevated further when his daughter Akshata Murty's husband, Rishi Sunak, served as Prime Minister of the United Kingdom, making Murthy the father-in-law of a world leader.

Murthy has received numerous honors including the Padma Vibhushan (2008) and Padma Shri (2000), two of India's highest civilian awards. Fortune magazine has listed him among the "12 greatest entrepreneurs of our time," and Time magazine and CNBC have described him as the "father of the Indian IT sector."

Early life and education

Family background

Narayana Murthy was born on August 20, 1946, in Shidlaghatta, a city in the Kolar district of the southwestern Indian state of Karnataka. He was born into a Kannada-speaking middle-class Deshastha Madhva Brahmin family.

The family's circumstances were modest but respectable, typical of the educated middle class in India during the immediate post-independence period. Education was highly valued, and the young Narayana was encouraged to pursue academic excellence.

Education

After completing his primary and secondary education in local schools, Murthy enrolled at the National Institute of Engineering in Mysore, Karnataka. He graduated in 1967 with a bachelor's degree in electrical engineering, providing the technical foundation for his later career in computing.

Murthy continued his education at the Indian Institute of Technology Kanpur (IIT Kanpur), one of India's most prestigious engineering institutions. He earned his master's degree from IIT Kanpur in 1969, specializing in computer science during the early years of that field's development in India.

In 2007, Murthy received an honorary degree from Lancaster University in the United Kingdom, adding to his academic credentials.

Transformative experience in Europe

A pivotal experience that shaped Murthy's worldview occurred during his travels in Europe in the early 1970s. He was arrested and detained in a communist-era border town near the Yugoslav-Bulgarian border, reportedly for no good reason. The experience of arbitrary detention under an authoritarian socialist system profoundly affected his political philosophy.

Murthy has stated that this experience transformed him from a "confused leftist/communist" into a "compassionate capitalist." He emerged with a belief in free enterprise and democracy combined with concern for social welfare - a philosophy that would inform his approach to building Infosys and his later philanthropic activities.

Early career

Academic research

After completing his master's degree, Murthy began his career as a research associate at the Indian Institute of Management Ahmedabad (IIM Ahmedabad), one of India's leading business schools. He later became chief systems programmer at IIM Ahmedabad.

During this period, Murthy worked on India's first time-sharing computer system and designed and implemented a BASIC interpreter for Electronics Corporation of India Limited (ECIL). These early experiences gave him deep exposure to computing technology and its potential applications.

First entrepreneurial venture

Murthy's entrepreneurial instincts led him to start a company called Softronics. However, this first venture failed after approximately a year and a half. The failure provided valuable lessons about the challenges of building a technology company in India during that era.

After Softronics failed, Murthy joined Patni Computer Systems in Pune, Maharashtra, gaining additional industry experience before his next entrepreneurial venture.

Founding and building Infosys

Founding with Rs 10,000

In 1981, Murthy and six colleagues - Nandan Nilekani, S. Gopalakrishnan (Kris Gopalakrishnan), S. D. Shibulal, K. Dinesh, N. S. Raghavan, and Ashok Arora - founded Infosys Consultants Pvt Ltd. The initial capital was Rs 10,000 (approximately $1,200 at the time), which was provided by Murthy's wife, Sudha Murty, from her personal savings.

The founding story has become legendary in Indian business circles: a group of software professionals pooling their modest resources to create what would become one of India's most valuable companies. It exemplified the transformative potential of entrepreneurship in a country then known more for License Raj bureaucracy than business innovation.

CEO tenure

Murthy served as CEO of Infosys for 21 years, from 1981 to 2002, guiding the company through its early years of struggle to its emergence as a global IT services leader.

During this period, Murthy articulated, designed, and implemented the Global Delivery Model (GDM) for IT services outsourcing from India. This model - which used India's large pool of English-speaking, technically trained workers to provide IT services to clients in developed countries at significantly lower costs - became the foundation of India's IT industry.

In 2002, Murthy stepped down as CEO, handing the role to co-founder Nandan Nilekani. However, he remained deeply involved with the company.

Chairman and beyond

After stepping down as CEO, Murthy served as chairman of Infosys's board from 2002 to 2006, and subsequently as chief mentor. In August 2011, he retired from the company entirely, taking the title of chairman emeritus.

However, his retirement was not permanent. In June 2013, amid concerns about the company's direction, Murthy returned to Infosys as executive chairman for a period of five years, with his son Rohan Murty serving as his executive assistant. Murthy stepped down as executive chairman in June 2014 and remained as non-executive chairman until October 2014, when he resumed the chairman emeritus role.

Corporate governance controversy

In 2017, Murthy raised concerns about alleged corporate governance lapses at Infosys, though the company denied these claims. The controversy highlighted tensions between founders and professional management that can arise as companies evolve.

Business philosophy

Compassionate capitalism

Murthy's business philosophy, shaped by his experience with communist systems in Eastern Europe, emphasizes what he calls "compassionate capitalism" - free enterprise combined with concern for employees and broader social welfare.

This philosophy manifested at Infosys through employee stock ownership programs that created thousands of millionaires among early Infosys employees, transparent corporate governance practices, and a reputation for ethical business conduct.

70-hour work week controversy

In late 2023, a comment by Murthy suggesting that young people should work 70 hours a week to boost India's national productivity sparked widespread public debate. Critics argued that such demanding work schedules would harm workers' physical and mental health.

A year later, in November 2024, Murthy addressed the controversy, clarifying that the remark was a matter of "personal introspection" and not a mandate. He noted that while he personally worked more than 70 hours a week for over 40 years, it was a personal choice: "Nobody can say you should do it."

However, Murthy later advocated for the 996 working hour system (9:00 AM to 9:00 PM, six days a week) in India, suggesting it contributed to China's rapid growth. These comments received widespread criticism given the well-documented negative health effects of such schedules and the fact that the 996 system was outlawed by the Chinese Supreme Court in 2021.

Board memberships and public roles

Corporate boards

Murthy has served on numerous corporate boards:

HSBC: Independent director
DBS Bank: Former director
Unilever: Former director
ICICI: Former director
NDTV: Former director

Advisory roles

His advisory positions span education, philanthropy, and international affairs:

Cornell University: Advisory board member
INSEAD: Advisory council member
ESSEC: Advisory role
Ford Foundation: Board involvement
UN Foundation: Advisory role
Indo-British Partnership: Member
Asian Institute of Management: Advisory role
Infosys Prize: Trustee
Institute for Advanced Study (Princeton): Trustee
Rhodes Trust: Trustee
Public Health Foundation of India: Chairman of governing board
British Telecommunications: Asia Pacific advisory board member

Legal sector involvement

Murthy serves on the strategic board that advises Cyril Amarchand Mangaldas, India's largest law firm, on strategic, policy, and governance issues. He is also a member of IESE Business School's International Advisory Board.

Investments

In 2010, Murthy made an investment in SKS Microfinance along with venture capitalist Vinod Khosla. The microfinance sector aligned with his philosophy of compassionate capitalism and financial inclusion for the poor.

In 2016, Murthy participated in FXC as a board member.

Personal life

Marriage and family

Murthy's wife, Sudha Murty, is an accomplished author, educator, and philanthropist in her own right. She has served as chairperson of the Infosys Foundation, the company's philanthropic arm, and has published numerous books in Kannada and English.

The couple has two children:

Rohan Murty: An entrepreneur and technology executive. From June 2013 to June 2014, Rohan served as executive assistant to his father during Murthy's return to Infosys. He left to found his own company, Soroco, in 2014.

Akshata Murty: A businesswoman and fashion designer. In 2009, Akshata married Rishi Sunak, a British politician of Indian descent who would serve as Prime Minister of the United Kingdom from 2022 to 2024. This made Murthy the father-in-law of a British Prime Minister - a remarkable connection between Indian and British political worlds.

Sudha Murty's role in Infosys

The role of Sudha Murty in Infosys's founding is particularly notable. It was her personal savings of Rs 10,000 that provided the seed capital for the company. Her willingness to risk the family's savings on her husband's entrepreneurial venture was essential to Infosys's existence.

Honors and recognition

Indian government honors

Padma Shri (2000): One of India's highest civilian awards, for contributions to trade and industry
Padma Vibhushan (2008): India's second-highest civilian award

International recognition

Fortune magazine: Listed among the "12 greatest entrepreneurs of our time"
Time magazine and CNBC: Described as the "father of the Indian IT sector"
World Economic Forum: Co-chaired the annual meeting in Davos in 2005
Time 100: Named to lists of influential people

Honorary degrees

Murthy has received honorary degrees from numerous universities worldwide, reflecting his contributions to technology and entrepreneurship.

Publications

Murthy is the author of several books reflecting his business philosophy and perspectives on India's development:

<ref>A Better India, a Better World.Penguin Books India.ISBN 978-0-670-08283-4.</ref>

<ref>The Wit and Wisdom of Narayana Murthy.Hay House.ISBN 978-93-85827-02-0.</ref>

<ref>A Clear Blue Sky: Stories and Poems on Conflict and Hope.Puffin Books.ISBN 978-0-14-333141-4.</ref>

Legacy

N. R. Narayana Murthy's legacy is profound and varied:

In the IT industry: Murthy is credited with pioneering the Global Delivery Model that made India a global IT services hub. This model created millions of jobs in India and transformed the country's economy.

In Indian entrepreneurship: The Infosys founding story - starting with Rs 10,000 and growing to billions - became an inspiration for generations of Indian entrepreneurs. Murthy demonstrated that world-class companies could be built in India.

In corporate governance: Infosys under Murthy's leadership was known for transparent corporate governance practices that set a standard for Indian companies. This legacy has influenced how Indian corporations are managed.

In philanthropy: Through the Infosys Foundation and personal giving, Murthy and his wife have supported education, healthcare, and rural development across India.

In public discourse: Murthy has been an influential voice on economic policy, education reform, and entrepreneurship in India, shaping public discussions on these issues.

In global connections: Through his daughter's marriage to Rishi Sunak, Murthy became connected to the highest levels of British politics, symbolizing the growing influence of the Indian diaspora in global affairs.

References

External links

Profile at Infosys