Murthy was awarded at a summer graduation ceremony at the university's campus in Surrey, where the university's computer science undergraduate and postgraduate students also received their degrees.
"It is a great privilege to receive this award and I am grateful to Royal Holloway for recognising me in this way. I am honoured to be joining this new generation as they graduate. They are each about to take their next steps in what I hope will be productive and positive careers.
"Their potential, combined with the knowledge and skills they have gained through their studies, fills me with hope and excitement for our future, and the positive difference they can make in our world," Murthy said in a statement.
Murthy co-founded Infosys in 1981, with its focus was on designing and implementing a global delivery model for IT services which relied on outsourced staff based in India.
A global leader in technology services and employer of 70,000 people globally, Infosys has $3billion in revenues and was the first Indian company to be listed on the America stock exchange in 1999.
Murthy has been appointed Commander of the Order of the British Empire (CBE). He is also a recipient of the Padma Vibhushan, and Legion of Honour, the highest French order of merit.
( With inputs from IANS )