Veterans Hargopal Mangipudi, Murli Krishna may put in their papers
Infosys is likely to see more exits at the senior level. Hargopal Mangipudi, a key Infosys executive who spearheaded the company’s only product business Finacle, is expected to resign shortly.
Along with him, another veteran, Murli Krishna, the computers and communications division head and vice-president of the company, is also set to resign, sources in the company told BusinessLine.
Mangipudi has been with Infosys for the past 19 years and was the face of the company’s Finacle business. A senior Vice-President, he is also part of the executive council. Finacle, once the flagship product of Infosys, has been under stress the last few years.
Core banking solution providers such as FIS, Fiserv, Jack Henry, and D+H have a stranglehold on the market that Finacle has been struggling to break into, especially after the Lehman crisis in 2008. The US core banking market was worth about $2.9 billion in 2013, according to Celent.
When contacted, an Infosys spokesperson said the company does not comment on the exits of mid-level executives. A year ago, there were 24 Senior Vice-Presidents in the company, and the number now is down to 10, sources said.
Analysts attribute the exits at the top to various reasons. “The possibility of an external CEO and the lack of a clear career path are big factors,” said Sanchit Vir Gogia, IT analyst at Greyhound Research.
This worry has affected clients too. Some of the clients that Greyhound Research spoke to said they have written to Infosys asking for reasons for the recent senior level exits and offer definitive guidance on the new management to win back client confidence.
Infosys, on its part, has maintained that it addresses client concerns constantly.
Meanwhile, some other analysts believe that the exits do not impact the company. “Clients are not impacted very much as a lot of these individuals are not client-facing and do not interact much with them,” said AK Prabhakar, a Mumbai-based IT analyst.
He said only when attrition happens at the lower level or at active client-facing roles does it cause a lot of concern.