Infosys CEO Salil Parekh takes charge of the company on Tuesday with the expectation that it marks a fresh beginning at the Bengaluru-based company. Infosys is looking to put aside annus horribilis that was 2017 — a year marked by a bitter, public fight between the founders and former CEO Vishal Sikka that eventually led to the latter’s departure.
Apart from managing the founders, who hold a near 13% stake in Infosys, Parekh’s immediate challenge will be to align the strengths of Infosys’ DNA and culture with the future strategy and direction of the firm and to decide quickly which of Sikka’s initiatives to keep investing in. It will be interesting to note whether he sets any ambitious revenue and margin target, something Sikka had but fallen woefully short. “It will be important that he should not over promise on growth or margins when he does this. A major problem of past Infosys leadership has been setting unrealistic expectations at a time of industry change. He will need flexibility on margins as he builds the new digital Infosys and flexibility on growth as the new digital business cannibalises the legacy book of business,” Peter Bendor-Samuel, CEO of Everest Group, said.
