The employees at the IT outsourcing major Infosys were up for a pleasant surprise when they received the highest level of payout in the past nine quarters despite December being a weak quarter.
The employees at the IT outsourcing major Infosys were up for a pleasant surprise when they received the highest level of payout in the past nine quarters despite December being a weak quarter. The company offered its professionals 95 percent of variable pay in the December quarter. It is the highest quarterly variable payout by the company in the previous 9 quarters that has usually been ranging around the 75 percent range, The Times of India reported. Salil Parekh took over as the MD, CEO of information technology (IT) major of Infosys. He was appointed for a period of five years effective from January 2, 2018. Vishal Sikka, former CEO of the IT outsourcing major had awarded company’s 3,000 best performers iPhone 6S last year as a mark of appreciation and perhaps in an effort to arrest the high attrition rate.
India’s second-largest software service provider Infosys posted a 38 percent rise in net profit to Rs 5,129 crore in the October-December quarter, compared to Rs 3,708 crore in the corresponding quarter last year. The results were mainly buoyed by reversal of income tax expense provisions of Rs 1,432 crore on US IRS agreement. The company has also maintained FY18 EBIT margin guidance of 23-25% for the year and retained FY18 constant currency revenue growth guidance of 5.5-6.5%, in line with expectations. The event assumes significance as it’s the first quarterly earnings reported by the IT behemoth after the appointment of new CEO Salil Parekh who took over the reins of the company from January 2 this year. This is the first result announcement since Salil Parekh took over as CEO this month. His predecessor Vishal Sikka quit late last year after a long-drawn public feud with Infosys’ founders.
About Salil Parekh
Notably, Salil Parekh’s appointment is third management change in Infosys in last 4 years. Parekh replaced company’s interim CEO U B Pravin Rao who took charge after the resignation of Vishal Sikka. Parekh had earlier worked as an executive at consultancy firm Capgemini. A statement from Infosys has stated that interim CEO Pravin Rao will be re-designated as the chief operating officer of the company. Salil Satish Parekh has been Head of Cloud Infrastructure Services, Sogeti and Cloud Services and Head of Asia-Pacific, North America and the United Kingdom at Capgemini since October 22, 2016. He was also serving as the Member of Group Management Board at Capgemini.