Infosys: Ashok Vemuri's exit seen as fallout of NR Narayana Murthy’s US strategy

Aug 29 2013, 09:31 IST
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SummaryMurthy seems to be on a mission to streamline the company's US operations.

* Infosys executive chairman NR Narayana Murthy seems to be on a mission to streamline the company's US operations. According to people close to him, Cognizant and TCS's continued success in the US has him worried and he is looking at every possible move he can make to address this gap at Infosys.

Wednesday's resignation of the company's Americas head Ashok Vemuri is a direct fallout of Murthy's new plans for the geography, sources told FE. Vemuri's resignation has come just a few days after the company announced the exit of Sudhir Chaturvedi, vice-president and financial services head for Americas.

"Cognizant has been worrying Infosys in the US. Francisco D'Souza and his team derive almost 80% of its revenues from America, and Murthy feels that Infosys's performance in the US has to pick up significantly if it has to turn the corner,” said a source. “Murthy has instructed the sales team to get back on track in the US. The focus, he has communicated, should be on America,” this person told FE.

Cognizant's revenue from North America rose 17% to $1.68 billion in the April-June quarter. Infosys clocked around $1.22 billion from the region during the same period. Meanwhile, North America contributed 61% to revenues during the period, a nearly 3% slip from the same period last year.

In his review of the company's performance since returning to power in June, Murthy has told some of his colleagues that it was important to focus on markets that yielded highest returns. Murthy felt this was not the time for Infosys to look at other emerging geographies or try and eke out more returns from products and platforms and other such initiatives. CEO SD Shibulal's 3.0 initiative is not something that is being talked much about in Infy’s corridors anymore.

Last week, Infosys named Ranganath D Mavinakere, Binod Hampapur Rangadore and Nithyanandan Radhakrishnan to its executive council. There is also intense speculation that Murthy's son Rohan Murty could be elevated as vice-president.

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