Infosys’ Narayana Murthy(NRN) recently has told “IT industry needs to pay higher taxes and does not need Software Technology Parks of India (STPI) extension any more”.    This is the reason behind this article now.

Well, I had seen many companies following some illegal and unethical practices during their start-up stage.  To ‘grow’, it was absolutely necessary for such start-up companies to adhere to ‘normal practices’ due to the current political system in the country.    I’m not suggesting here to be illegal.  But practically it is very difficult to be 100% legal in the current scenario. For example, people from top IT companies travel on Business visa to work in US because of the complexities involved in getting work permit.  If they don’t send their team on business visa, they won’t get further revenue for their offshore center.

While I was working in a MNC 13 years back, we used to ‘photocopy’ books from the office library.  After few years, once it became ‘affordable’ for the company (this is the perception I got, may be wrong), they formulated a rule that no photocopying of books were allowed. 

With the ‘legal’ aspect removed in the above example, NRN’s statement looks similar to me now.  Infosys has grown to a great extent that they can afford to pay huge taxes.  But think about small and medium companies that wish to become ‘another Infosys’.   How can they afford such huge taxes?  Shouldn’t they also enjoy similar tax benefits which Infosys enjoyed for more than 25 years in India?

What I feel is that there should be some ‘tax slab’ for each company.  For the first slab, there must be lesser tax or nil tax.  Then it should increase gradually like the individual income tax.  If NRN meant that statement this way, it would be really great.  I wish he meant that way because I’ve great respect for him and his team.  I learned about ‘ethics’ only from his company while I was working there.  Also, no one should comment that, ‘You can be legal and ethical when it is affordable’.

When I used to read the results of “Best companies to work for” in many business magazines, I used to think that apart from the parameters mentioned in the survey result, there must be one more parameter “Number of Entrepreneurs from that company”.  Here I’ll explain why this parameter must be added.

While talking to few of my friends in my old company I asked them whether they had any plan to change their job or start their own business.  Most of them said that they were very comfortable with the company and never wanted to leave it till their retirement.  One friend told me very frankly, “Viru, I am not extremely happy here.  But what will I say in my next interview if I wish to leave this job.  I really don’t know.  Also I’ve taken so many loans for which I need to pay a major part of my salary.  If I wish to start my own business, who will pay my EMIs every month?”

His answer made me think that some ‘big & famous’ companies mould their employees in such a way that they become ‘unemployable’ in other companies.  Also they never offer ESOPs to their employees to become financially stable (if not rich) to start their own business.  Those companies can easily appear in “Best companies to work for” list as they keep their employees ‘happy’.

In my perception, if you want to call a company as “Best company to work for”, you must also judge it by the number of ‘Entrepreneurs’ it has generated. If this number is more, it means that the company had given enough confidence (both technically & managerially) for their employees and did help them to be financially stable to start their own company.  Which survey will add this parameter?

(Please Note:  I’ve started a website http://exinfoscions.com/entrepreneurs to list the entrepreneurs who worked at Infosys for more than 8 years.  It will be ‘UP’ soon.)