Infosys CEO Vishal Sikka has outlined five game changing priorities during the course of this fiscal which could propel India’s second largest IT services exporter to the next level of performance, driven by automation, innovation and education. Encouraged by a strong performance during FY16 and a healthy revenue guidance for FY17, Sikka, in an exclusive interaction with FE following the announcement of its fourth quarter results, said, “I have five priorities for Infosys which will free up the bandwidth for our employees to drive innovation.”
The number one priority for Sikka would be to get its innovation to scale which would be mean that many of his initiatives like design thinking, zero distance, technology platforms etc would filter down to the entire company.
Ever since Sikka took over as the CEO of Infosys in August, 2014, he has been introducing numerous initiatives which have started to resonate well with both the employees and customers. This is also connected with the core operating cost structure of the company. “We do not do a project just because it is cheaper, we do it because we provide improved solution,” the Infosys CEO said.
Sikka said, “Our revenue per employee is going down and margins are under pressure so we will reshape our cost structure.” The company has set an ambitious target of achiveing $80,000 revenue per employee by 2020 as part of its $20 billion revenue goal. The revenue per employee dropped to $50,700 for FY16 as against $52,300 in FY15.
This would also be linked directly to creating an environment of a zero bench, which Sikka felt is extremely important for the company. Infosys currently operates with an utilisation level of around 80% which would mean that around 20% of its 1.90 lakh employees are not gainfully utilised.
The Infosys CEO has also plans to elevate the performance level of its key subsidiaries like BPO and its products & platforms unit EdgeVerve. He felt that technologies like automation would find its biggest beneficiaries in the BPO unit.Sikka felt that there has been a marked change in the behaviour of Infosys employees over the last 18 months with its attrition rates coming down despite no big change in its salary structure.
“When I took over, there was an incredible sense of anxiety and concern about the future. Today, they are excited and inspired about what they are doing,” he remarked. Infosys over the last 18 months has witnessed a steady number of tech executives from other firms taking up key roles within the company while Sikka has also been grooming the talent within.
* Scale up innovation engine by introducing new products and platforms
* Reshaping cost structure by increasing revenue per employee
* Creation of a zero bench
* Elevate specific business areas like BPO and Edgeverve
* Rethinking education curriculum in Infosys