Infosys allays analyst fears over attrition, top-level exodus

Jun 06 2014, 13:34 IST
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Sandeep Mahindroo, Infosys’ assistant financial controller, said some of  the relationships have been disturbed. Image Courtesy: Reuters Sandeep Mahindroo, Infosys’ assistant financial controller, said some of the relationships have been disturbed. Image Courtesy: Reuters
SummaryKey clients of Infosys have raised concerns over spate of senior management exits and high attrition levels in the company.

With key clients raising concerns over the spate of senior management exits and high attrition levels in the company, Infosys has some more serious answering to do. At the Morgan Stanley India conference investor call on Thursday, Sandeep Mahindroo, Infosys’ assistant financial controller, said some of the relationships have been disturbed.

“Client satisfaction has not changed much in either direction. There have been some queries on various aspects whether it is attrition or management departures,” Mahindroo said, adding some of the relationships have been disturbed due to the departures of the key individuals. “By and large, we have not seen an impact on our business,” he said.

Infosys official said the company is engaged with all clients on a continuous basis at various levels — CEO, Board and the vertical business heads. “We have to ensure we maintain these relationship,” he remarked.

The company has seen a dozen of senior executives leaving over the last one year, which has raised concerns among the analysts over its ability to meet the customer requirements. Another challenge faced by Infosys is the exit of mid-tier level employees who form the core group of their execution ability.

Mahindroo during the call remarked that it would take a longer time for them to achieve the level of growth which would match the industry standards. Infosys, today is focused largely on getting its growth back which had considerably slowed down in the last two fiscals.

Besides the challenges of growth, Infosys has to also address the concerns of high attrition level, improvement operating profit margins and effectiveness in sales.

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