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For the first time, Infosys Executive Chairman NR Narayana Murthy has said that most of the people who left the company recently were drawing high salaries and not adding value.
Addressing Bank of America Merrill Lynch analysts through a video link, Murthy assured investors that the spate of management exits did not indicate turmoil in the company and said the company was efficiently executing projects. Hinting that there was more to the exits, he said: “We have to take tough decisions as most of them were deriving high salaries and not adding value.”
Concerns among analysts cropped up when Board member V Balakrishnan, head of Americas Ashok Vemuri and Stephen Pratt, former head of Infosys Consulting and the highest paid executive for two years, left in quick succession.
When one of the investors asked him about the exits, Murthy categorically said that there is no turmoil within the company.
Sweeping changesEver since his comeback, Murthy has made sweeping management changes and recently inducted Kiran Mazumdar-Shaw, Chairperson and Managing Director of Biocon, as an independent Member on the Infosys Board.
Additionally, the company’s Board also inducted Pravin Rao, Senior Vice-President and Global Head, Retail, Consumer Packaged Goods, Logistics and Life Sciences.
Murthy said Infosys would identify a new CEO by March 2015, when SD Shibulal retires.
Infosys has tried to reassure other analysts in a similar manner.
In November, talking to Barclays analysts, Murthy asserted that the company is well positioned in its path to regain market share, improve efficiency and optimise costs.
Neglecting clientsApart from internal issues, analysts had also raised concerns around the company not paying enough attention to some projects, which affected client satisfaction, an area in which Cognizant and Wipro have made strides.
In the Bank of America Merrill Lynch address, Murthy emphasised that delivery of software projects, response time to clients and quality of outsourcing proposals submitted have all improved.
He added that this is in line with his plan to build a ‘desirable’ Infosys in three years.
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