It's debatable whether going back in time -- twice in a span of four years -- by bringing back a once-proven leader at the top is the correct thing to do when Infosys desperately needs to be made future-ready.
The stranglehold of the founders over the Infosys management has strengthened after the recent changes.
The company has raised its revenue outlook for FY2019-20 in constant currency to 10-10.5 per cent, from its topline guidance of 9-10 per cent given in October.
Investors' wealth jumped Rs 13.78 lakh crore on Monday as the benchmark equity index Sensex hit its lifetime high after exit polls predicted a massive win for the BJP-led NDA in the Lok Sabha polls. The 30-share BSE Sensex jumped 2,777.58 points or 3.75 per cent to hit a record peak of 76,738.89 in early trade. The benchmark finally ended at 76,468.78, registering a sharp rally of 2,507.47 points or 3.39 per cent.
Ranganath has held several leadership positions.
2019, however, will be a bigger test as the firm continues to deal with rising attrition and margin pressure.
Infosys has tried to bring stability to the troubled company, which was struggling to maintain its growth momentum in the changing dynamics of technology industry.
The new CEO's next challenge is to grow margins.
The US legal action is likely to further strengthen public opinion, at a time of high unemployment, against information technology outsourcing -- which is seen to take away jobs from locals.
In another senior-level exit from Infosys, Humberto Andrade had quit as head of the company's Latin America business process outsourcing (BPO) operations to join rival Capgemini.
The company said attrition of high performers had declined to 11.2 per cent during the quarter
Even as Srini Pallia, a Wipro veteran, is set to take charge as the chief executive officer (CEO) of the company, analysts expect the stock's underperformance to continue in the near-future. This, they believe, will be on the back of likely loss of market share, and difficult business environment. "We expect Wipro to underperform peers on growth once again in FY25 as channel checks and media reports suggest Wipro is losing share with select clients across multiple verticals.
Nandita Gurjar, Sanjay Purohit and Gautam Thakkar among "potential exit candidates".
In the wake of reports about allegations of sexual harassment made by a group of women staff at IT major Infosys against one of its senior executives, the company on Friday said "swift" and "appropriate" actions are taken in all such cases.
They expressed disappointment over the firm's performance.
Proxy advisory firms say the praise on Twitter was uncalled for.
There were no evidence of any kickbacks, inappropriate contracting or unreasonable expenses
One possible way of accelerating National Education Policy's outcome is to invite 10,000 retired highly accomplished teachers from the developed world and from India in STEM areas to create 2,500 "Train the Teacher" colleges in the country's 28 states and eight union territories, Murthy said.
The low-profile CEO started his new innings with the new year.
The decision has been taken because Executive Chairman N R Narayana Murthy attempts to bring Infosys back to basics.
Unless Murthy launches an aggressive search for a significant infusion of new blood, he will find it difficult to implement the dramatic changes to Infosys' fortunes that everyone expects him to, says P R Ganapathy.
In FY16, Infosys had 48 employees in India who were paid more than Rs 1 crore in annual compensation, as compared to 111 in FY15.
The culture clash isn't the only issue - most of the founders are still wary of risky bets while the new management thinks calculated aggression is necessary in the new world of business, says Shyamal Majumdar.
Tata Consultancy Services (TCS), India's largest IT services firm, is planning to increase salaries by an average of 7-8 per cent for its offsite employees and 2-4 per cent for its onsite staffers in 2024-25. High performers can expect a raise of 12-15 per cent. The company, which had a headcount of 603,305 as of December 31, 2023, will be closely looking at the promotions and the process may also get pushed to the first quarter of FY25, revealed a source on condition of anonymity, because he is not authorised to speak to the media.
Be it the industry laggard performance or harassment allegations by overseas employees, Infosys has a tough road ahead and investors will look at Sikka to sort out the issues.
While growing up, Infosys was a real role model to all of us. The opportunity to lead this iconic company is something amazing, says Vishal Sikka.
"There was not a single decision that I took during my second tenure without discussing it with Ranga and getting valuable input from him," says Narayana Murthy.
India's second largest IT firm Infosys has extended the tenure of its chief Vishal Sikka by nearly two years till March 2021, saying his initiatives have helped the company move towards reclaiming its industry leadership position.
Infosys is recruiting 18,000 people in 2009-10 compared with 28,231 a year ago and will freeze wages to rein in costs. Of the 18,000 new recruits, about 2,000 will be lateral hires, with the rest being freshers. "Our offer letters have gone out over two-and-a-half months ago and we expect most of the new employees to join soon. The conversion rate will be 80 per cent," said HR Director TVM Pai. He ruled out any revision of the salary offers to freshers.
Murthy's letter comes even as Sikka celebrates the completion of three years at the helm of India's second largest software exporter.
Most high-profile exit since co-founder Narayana Murthy returned to the helm.
In a complaint filed with the US Department of Labor in May, Palmer said Infosys and eight of its senior executives denied him work, bonuses and promotions and later terminated him, The Wall Street Journal reported on Tuesday.
The departure of Srinivas, the 10th senior executive to exit in the last year, widens a leadership vacuum at Infosys as it searches for a new chief executive.
The current executive co-chairman S Gopalakrishnan will be re-designated executive vice-chairman while S D Shibulal, who was one of the seven engineers to launch the company in 1981 by pooling together $250, will continue as Chief Executive Officer (CEO).
In yet another high profile exit at Infosys, India's second-largest information technology (IT) services company, Ashok Vemuri, head of operations (Americas) and global head (manufacturing and engineering services), has resigned.
After high-profile exits in the past couple of months, Infosys, the country's second largest information technology services company, has undertaken a top-level management restructuring.
Infosys had guided for a revenue growth in the range of 11.5-13.5%, which has now been lowered to 10-12%.
The company has decided to consolidate its delivery functions horizontally
Amidst the outrage among certain Satyam employees to Infosys Co-Chairman and Chief Mentor N R Narayana Murthy's statement last week that Infosys would not recruit employees from the disgraced IT firm based in Hyderabad, top Infosys executives on Tuesday stood by their stand. They also couched their views on the Satyam scam in decidedly softer terms. Infosys said that the accounting scandal at Satyam did not call into question the competence of its (Satyam) employees.
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