Infosys, India’s No.2 IT services company, said on Saturday it had named Salil S Parekh, an executive at consultancy firm Capgemini, as its next chief executive officer and managing director.
Infosys, India’s No.2 IT services company on Saturday named Salil S Parekh, an executive at consultancy firm Capgemini, as its next chief executive officer and managing director. Parekh has been appointed for a five-year term effective Jan. 2, according to an Infosys filing to exchanges. Infosys interim CEO Pravin Rao will be re-designated as the chief operating officer of the company from Jan. 2, the statement added.
Major challenges before Salil S Parekh are as follows:
1)Beefing up outsourcing business: The traditional outsourcing business in general faces a margin squeeze and newer ventures have yet to make money. So, the work environment in the IT world is still very challenging. The expected work visa changes (H1B) in the United States, the biggest market for Indian IT firms, has become a headache for the company.
2) Carry forward Sikka’s automation strategy: Parekh needs to carry forward former CEO Vishal Sikka’s automation strategy with an increased vigor. He needs to push it further to adopt automation and venture into transformational high-margin areas like big data, cloud and analytics. Being an outsider, this will require considerable effort and initiation.
3) Retaining talent: The priority is to retain the talent and slow down attrition at the high-level . Sikka’s departure rattled the rank-and-file and senior level executives critical to rolling out its strategy and retaining clients.
It will be required of Salil S Parekh to ensure the smooth transition of the organization. However, being an outsider, the transition will not be that easy.
Earlier in August, Sikka announced his resignation from the post of company CEO, a move that sent shockwaves to India Inc. Sikka’s resignation came following the differences with some founders mainly Narayana Murthy of the company, including Narayana Murthy. Writing a letter to the board, Sikka had cited “a continuous stream of distractions and disruptions” as resasons that were hindering management of the company.
“Governance standard must be brought to a reasonable level if not the pinnacle, don’t want money, a position for our children and power. Just don’t want board to drive this institution to death via serious governance deficits,” Murthy had then responded.