By Tabish Salam
On 18 August 2017, Dr. Vishal Sikka resigned as CEO of Infosys citing unrelenting personal attacks on him over the past several quarters. However, he has agreed to take on the executive vice-chairman role till 31 March 2018 to ensure a smooth transition. The board has blamed Narayana Murthy for forcing Dr. Sikka out.
Vishal Sikka's abrupt exit puts the company in a state of disarray. Allegations and counter-allegations have been flowing thick and fast since Vishal Sikka resigned as managing director and CEO of IT bellwether Infosys. Crises at Infosys opens up the Pandora box which has led head hunters analyse the key takeaways. The Indian system of succession planning within corporates differs largely from their global counterparts, which begin to hunt for a successor quite a few months in advance. Emergency at Infosys clearly shows that no matter how large, most companies fail to plan for leadership vacuum at the top.
Vishal Sikka's abrupt exit puts the company in a state of disarray. Allegations and counter-allegations have been flowing thick and fast since Vishal Sikka resigned as managing director and CEO of IT bellwether Infosys. Crises at Infosys opens up the Pandora box which has led head hunters analyse the key takeaways. The Indian system of succession planning within corporates differs largely from their global counterparts, which begin to hunt for a successor quite a few months in advance. Emergency at Infosys clearly shows that no matter how large, most companies fail to plan for leadership vacuum at the top.
The poster child of the Indian IT industry just cannot seem to stabilise its ship even after a decade of consistently losing market share under different leaders, mostly comprising of its co-founders. In fact, Vishal Sikka was the first non-founder CEO for the company and was the first one successful in bringing stability to the companys market performance vis-a-vis rivals like Tata Consultancy Services since it had begun deteriorating almost a decade ago.
The founders at Infosys seem to be having a tough time letting go of their control over the company. After Narayana Murthy stepped down as CEO in 2002, three co-founders succeeded him - mostly unsuccessfully in maintaining the company's growth trajectory. Murthy's vocal interference in the company's workings and Nandan Nilekani's return following Sikka's exit points to an utter unwillingness of handing over control to an "outsider". Since Sikka took over as CEO in August 2014, at least 12 senior executives, rank of senior vice president and above, have left the company.
The founders at Infosys seem to be having a tough time letting go of their control over the company. After Narayana Murthy stepped down as CEO in 2002, three co-founders succeeded him - mostly unsuccessfully in maintaining the company's growth trajectory. Murthy's vocal interference in the company's workings and Nandan Nilekani's return following Sikka's exit points to an utter unwillingness of handing over control to an "outsider". Since Sikka took over as CEO in August 2014, at least 12 senior executives, rank of senior vice president and above, have left the company.
The co-founder of Infosys, Nilekani who also holds the Padma Bhushan award from the government was named Infosys Non-executive Chairman on Aug 24, 2017. In his first message to Infosys shareholders, Nilekani said he will focus on bringing in stability and ensuring there are no discordant voices at the country's second-largest IT firm.
Nandan Nilekani's comeback definitely works as an advantage for Infosys and without doubt he has played a major role for the company in past, wherein this puts him in the high expectation grid to rescue Infosys for the transformation required. Nilekani was also held in high esteem by Infosys clients and investors.
Nandan Nilekani's comeback definitely works as an advantage for Infosys and without doubt he has played a major role for the company in past, wherein this puts him in the high expectation grid to rescue Infosys for the transformation required. Nilekani was also held in high esteem by Infosys clients and investors.
The road ahead for Infosys is fraught with challenges as the company works to scale its aspirational goal of becoming a $20 billion firm by March 2021.
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