Few of the headlines below that grappled the news recently:–
-Infosys shares fall as top executive quits (Times of India)
-Infosys crisis pulls market down to largest intra-day fall in 4 months (Financial Express)
-The Infosys Leadership Crisis (Business World)
-Sensex sheds 322 points; Infosys top loser on Srinivas exit (live mint)
-Clients query Infosys on top exits, rising attrition (Business Standard)
Infosys, once an IT bellwether is losing all its charm. The company which loved to be in headlines for all good reasons for more than 2 decades is now losing its torch bearers one after another. It saw 12 high profile exits in a year. This has raised eyebrows of its stakeholders. But before going ahead, I wonder what makes this company so special? Why it is that a drift from the company expectations become next day headlines in all dailies?
A dream of genius entrepreneurs and 7 middle class common people who were able to create a mansion of mammoth mega structure coliseum which not only drew attention from peers but also cross sector globally. Foundation of Infosys was different as it did not have a backing like its key competitors i.e. Wipro, TCS, Tech Mahindra etc. It was a mere dream and belief of a few common men which today employs more than 1,50,000 employees. This belief connects the common man with the ideology what it has achieved over the years. Its lush green sprawling campus in Bangalore, Mysore, Chennai, Pune, Bhubaneswar, Chandigarh, Jaipur are already landscapes. It is the only IT Company which has CISF cover in three of its development centers which clearly depicts the position of Infosys in the Indian economy. Respect and ethics it has earned till date has also played its part in taking the cherry position of huge IT cake. It introduced a Global Delivery Model which led to the phenomena of new IT industry. Cherishing the Old British Telecom case where Infosys deducted its contractual fee just because it could not deliver service to the client on time was one of the highlights in 90’s and brought a new trend in this growing industry. What led this organization to be so much in news these few months?
Hunt for the new CEO began six months ago. This will be a historical move because the company will witness a non-founder for the first time to be its boss. Similar to a two sides of coin, the question arose whether Infosys should pick its new boss from the organization or from outside? Infosys hired three global executive search agencies i.e. Hedrick & Struggles, Egon Zehnder and Russell Reynolds to submit a feasibility study. This activity raised questions as the Organization had to approach other institutions and depicted that it does not believe in the capability of its own employees. Infosys Leadership Institute (ILI) was built in 2001 with a vision to be a globally recognized institution that nurtures leaders and advances the field of leadership development. This activity has raised serious questions on the ability of the loyal employees and sent a wrong signal to their morale which is already facing the highest attrition rate of the sector at 18.6%.
Internal recruitment provides advantages such as potential employee is familiar with internal culture and business operations; Organization understands the strengths and weaknesses of candidates, it sends a strong signal to its workforce as it lifts up morale of the employees. External recruitment injects new ideas and thought process in the already build up institution, provides higher degree of options as Organization can hire global agencies to fit candidates. It allows a company to target the key players that may make its competition successful.
The entire rumors ended as Infosys announced Vishal Sikka, former CTO of SAP, as the chief executive officer and managing director of the company. Executive chairman N R Narayana Murthy and his son Rohan Murty will leave the company by October, almost four years ahead of Murthy’s designated term. Mr. Murthy did try to bring back the drenched ship which was losing confidence of shareholders, investors and all stakeholders.
Big Question now arises whether Vishal Sikka could provide “vikas” to Infosys? How much time Infosys will take to bounce back after organization restructuring?
Time will be the master in deciding the course of this entangled build up. Everyone wants this company which is facing challenges to come out stronger, perform to claim accolades and win the heart of people. We love to make a mockery of events laughing on the leadership crisis and comparing it with Indian National Congress which is also facing the similar conundrum, but somewhere inside our hearts we want the company to perform and deliver.
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