Infosys witnessed its first top-level exit following the entry of the new CEO, Salil Parekh, with the resignation of its president Rajesh Murthy.
Infosys witnessed its first top-level exit following the entry of the new CEO, Salil Parekh, with the resignation of its president Rajesh Murthy. An Infosys veteran, who has been with the company for 26 years, Murthy will sign off on January 31, 2018. Murthy was among the four senior executives of Infosys, with Ravi Kumar, Mohit Joshi and Sandeep Dadlani, who were elevated to the level of president in the April-June 2016 period. Dadlani left Infosys in June 2017. Murthy used to head Infosys’ consulting and the Europe business. He was also head of energy, utilities, telecom and services – a segment that accounted for 24% of the company’s revenues in the December quarter.
The resignation of Murthy raises a spectre of management instability in the company, which it had faced during the tumultous period of former CEO Vishal Sikka that saw numerous exits. Industry observers believe that the key element in the revival strategy of Infosys under Parekh would depend on the stability of the top management.However, Infosys chief operating officer UB Pravin Rao said Murthy had decided to resign two months ago due to personal reasons and nothing much should be read into his resignation. Meanwhile, in other developments, Infosys has disbanded the committee of directors formed in April 2017. This committee consisting of four board members was formed during the height of the spat between Infosys founders, led by NR Narayana Murthy, and the company. Ostensibly, this committee was formed to advise the then CEO, Vishal Sikka.
In terms of employee strength during the third quarter of FY18, Infosys made a net addition of 3,251 to take its total headcount to 2,01,691. This increase in headcount comes after two consecutive quarters of decline in employee additions. The attrition rate of the company for the third quarter stood at 15.8%, compared with 14.9% recorded in the second quarter of the fiscal. The company executives stressed that the attrition rate had come under control with lesser number of people leaving in the senior management ranks.