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The move to make Rohan Murty vice-president of Infosys has more to do with the pressure exerted from multinational clients and investors that would prefer to deal with top officials rather than with an executive assistant, a position he currently holds, according to some key company clients.
“As an executive assistant, he does not have the locus standi to attend deal-clinching meetings as clients normally do not give him any official recognition. Therefore, in some ways, by giving him the post of vice-president, his role is being strengthened,” an executive with one of Infosys’ large multinational clients who did not want to be named, told Business Line .
“Being an executive assistant does not give an individual (power) to make decisions regarding business and this is the reason Infosys wants him in that role,” said a partner in a multinational outsourcing firm who preferred anonymity.
Industry watchers also point to the fact that when it comes to outsourcing, more CEOs are getting involved in deal making, which is a departure from the past when outsourcing decisions were predominantly made by Chief Information Officers (CIOs).
Top job?
Incidentally, insiders in the company say that it was always well known that Murty will get elevated to the post of vice-president but what is being speculated among employees is whether he will eventually head the company.
Normally, the chairman of a company handpicks a very promising employee to make him his executive assistant so that he can groom him to take over from him at a later stage.
A case in point is the chairman and CEO of Xerox, Ursula Burns. She was appointed executive assistant to the then chairman and chief executive Paul Allaire in June 1991. By 1999, she was named vice-president for global manufacturing. She later went on to head Xerox.
Handling crises
Industry watchers and analysts also point out that this move signals the fact that the founders who built Infosys from scratch are willing to roll up their sleeves to handle the crisis at a time when the company has seen a spate of top management exits.
Murty, the Harvard-educated son of co-founder and executive chairman N. R. Narayana Murthy, joined the company as his executive assistant. The appointment has yet to be approved by the Ministry of Corporate Affairs.
When contacted, an Infosys spokesperson said: “Rohan Murty’s appointment at Infosys is yet to be approved by the Ministry of Corporate Affairs. His designation in the company will be confirmed once the process of his appointment has been completed.”
In the case of Infosys, since the return of Murthy, the company is looking to realign its management structure in such a way that it can become more competitive and bag deals.
“Infosys, with recent changes in its executive council, is trying to realign its management and quicken decision making,” said Santhosh Babu, founder of Organisation Development Alternatives, a top management coaching firm.
venkatesh.ganesh@thehindu.co.in
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