Troubles at Infosys Ltd, once India’s bellwether information technology services company, seem to continue with senior executives making a beeline towards the exit door. Reportedly, the latest one to leave is Anirban Dey, the global head and chief business officer of Edge products at Infosys’ wholly-owned unit EdgeVerve.
Anirban Dey resigned his position at EdgeVerve last week and is serving his notice period, the Mint newspaper reported on Monday citing three unidentified executives. Anirban Dey had followed Chief Executive Officer Vishal Sikka into Infosys, leaving his position as India Managing Director at SAP Labs in April 2015. EdgeVerve business contributed $143.1 million, or 5.4% of Infosys’ $2.65 billion revenue in the fiscal first quarter Apr-Jun.
Infosys has seen a steady exit of top level executives over the last one-two years. Earlier this month, Infosys’ $500-million Innovation Fund’s Managing Director Yusuf Bashir, and the company’s head of mergers and acquisitions Ritika Suri resigned the firm. Previously, in June, Infosys Americas’ head Sandeep Dadlani also quit the company. The US is the largest market for Infosys, with a majority of the company’s sales coming from the country.
Top Indian information technology companies such as Infosys, Tata Consultancy Services and Wipro, have recently found themselves in tight spot, as is showcased by high number of possible staff layoffs. The industry is rife with the news reports of top Indian IT companies considering laying off thousands of people to keep themselves afloat. These incidents are emblematic of the quagmire of slowing growth and environmental difficulties that lay ahead of the Indian information technology companies.
On one hand, reducing client spends and pricing pressures are squeezing these companies’ margins and bottom lines. On the other hand, due to increasingly tougher work visa regimes by countries like the US, UK, Singapore and Australia, these companies are finding it even more difficult to carry on with their operations in these countries in a cost-effective manner. To cope up with the stricter visa norms, Indian IT firms are ramping up local hiring in those countries. Infosys being a case in point, which plans to hire 10,000 Americans in the next two years and open four centres in the US.