Infosys, once India’s largest IT HR outsourcing service company, recently announced its plans for the year of 2018, with a new CEO, Salil Parekh, slated to take the reins of the company on the 2nd of January, and the hopes of rebuilding itself after a stormy 2017, which was marked by the company’s public standoff between its old leadership and its promoters.
The issue started when the company’s founder, N. R. Narayana Murthy inquired about the severance pay that the company promised to people like Rajiv Bansal; the company’s former key executives. Following that were inquiries into noted irregularities in the company’s $200M acquisition in Panaya. Murthy, the founder of Infosys and widely considered by many to be the man that put India on the world’s outsourcing market, said that Infosys had strayed from the vision that he had for it; the one that it was made famous for. Other former executives questioned the company following that, with inquires on allocation, and the like.
The issue was exacerbated when the Securities and Exchange Board of India as well as the US Securities and Exchange Commission received anonymous info saying that the Panaya acquisition made by Infosys was overvalued. Complications then lead to the then CEO of Infosys VishalSikka to eventually resign, and was followed by several other board member resignations.
One of the company’s co-founders, NandanNilekani was then brought in to repair the damage, including finding a new CEO to take control, for which he recommended Parekh, which was warmly received by Murthy himself. Many are saying that Parekh is an ideal choice, due to his experience and familiarity with the North American and European HR outsourcing service market, among other skills.
Experts are saying that Parekh has a lot of work to handle, in order to revitalize the $10B revenue company, once hailed as the poster boy India’s HR outsourcing service market. The company already set a target for revenues, with the aim of improving revenues to $20B by the year of 2020.
The predecessor in management said that the goal was ambitious, but it was confident that the company could reach that, provided it got itself together and took advantage of acquisitions and the newest developments in the market.