Tag: Infosys

Infosys Creates a Unit to Respond to Call of the Telecom Billions | In the News

Infosys chief executive Salil Parekh has carved out a separate business that will increase focus on telecom companies that look to leverage their network and subscriber base to transform themselves as content providers and retain their customers.

“The communications services segment is poised for strong growth over the next few years and will likely emerge as a strategic segment in which strong performance will be essential,” said Peter Bendor-Samuel, chief executive, Everest Group, a global IT research and advisory firm. He added that implementation of 5G networks itself would be a big opportunity, which will only increase with the convergence of “telecom and media”.

Read more in The Economic Times

Infosys draws up a 4-pillar plan to meet clients’ needs | In the News

With its four-pillar strategy that pivots around “Digital”, Infosys is refocussing on its client’s needs and has chosen to shift away from products, which was Vishal Sikka’s legacy.

At its fourth-quarter results announcement, CEO Salil Parekh revealed the final contours of a four-pillar strategy, which to a lot of industry watchers had resembled predecessor Sikka’s gameplan.

 

So, what has changed? Jimit Arora, Partner, Everest Group, explained that as part of the strategy review, the leadership has been decisive in terms of what aligns with Agile Digital. In this regard, Skava and Panaya were not fitting in strategy and hence being divested. This clear articulation of what the company seeks going forward seems to have convinced industry watchers.

Read more in The Hindu Business Line

Infosys abandons annual strategy session STRAP | In the News

Infosys will not be holding its annual strategy brainstorming session Strap (strategy, action and planning) this year. Instead, new CEO Salil Parekh has chosen to make it an ongoing exercise with a smaller group of internal leaders.

Peter Bendor-Samuel, CEO of IT consulting firm Everest Group, believes Parekh is trying to set his stamp on the organization. “He is also committed to avoiding the division and acrimony which has been the recent hallmark of Infosys. Hence he is attempting a more low key approach to internal communications and the canceling of Strap is one such example,” he says.

Read more in The Times of India

Under Salil Parekh, Infosys looks for clarity on growth strategy | In the News

Infosys may offer clarity on growth strategies this week as the company gears up to announce its results for the first quarter under new CEO Salil Parekh. The Bengaluru-headquartered software services exporter will announce October-December quarter results on January 12. While equity analysts foresee a muted growth for Infosys in a seasonally weak quarter, they will keenly look forward to Parekh and management’s commentary on future growth drivers and articulate on status of the digital transformation journey at the $10.2-billion company.

While commentary on those decisions are important, the company’s revenue share from software plus services and platforms will, analysts say, be key to set the focus areas for management under Parekh. Peter Bendor Samuel, CEO at global IT research firm Everest Group, has broadly underlined the prospective strategies Parekh may look at.

Read more in The Economic Times

Infosys Welcomes New CEO Salil Parekh From Jan 2 | In the News

The newly appointed Infosys CEO and MD, Salil Parekh takes charge today as the Indian IT major aims to create a positive work culture, revive growth and boost revenue under his aegis.

It will be interesting to look out for whether Parekh strategizes on any ambitious revenue and margin target, something Sikka could not establish. “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 cannibalizes the legacy book of business,” ET quoted Peter Bendor-Samuel, CEO of Everest Group, as saying.

Read more in CXOtoday

As Salil Parekh takes over as Infosys CEO, tough task ahead to win over founders | In the News

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.

Read more in The Times of India

Salil Parekh takes charge: Will he continue with Vishal Sikka’s vision for Infosys? | In the News

Infosys’ new chief executive Salil Parekh should focus on building a strategy on top of the digital transformation approach that his predecessor began, and take advantage of being based in Bengaluru, the headquarters of the company.

“Given his past record and the board’s forward looking statements it seems likely that the general direction and strategy under Sikka will continue,” said Peter Bendor-Samuel, the CEO of research firm Everest Group.

Read more in moneycontrol

New Infosys CEO Salil Parekh Brings Commitment to Digital Transformation | Sherpas Blue Shirts

Recently, Infosys appointed Salil S. Parekh, formerly a Group Executive Board member at Capgemini, as CEO and MD of Infosys. His selection was a surprising choice. He lacks the industry profile of Infosys’ prior CEOs and has no prior experience as a CEO. But I believe he is a talented executive who is well positioned to continue the existing Infosys strategy and is committed to building the next generation of Indian services. He understands all that an Indian talent base can offer while also understanding the need to broaden the global talent base and lead Infosys into a becoming a digital transformation leader. I believe the following perspectives are critical when evaluating the impact of this new leader at Infosys.

The Advantages He Brings to Infosys

As I blogged in August 2017 when Vishal Sikka resigned as CEO, the new Infosys CEO will need to make bold, decisive moves to position the company for the future. Specifically, I think he brings the following advantages to Infosys:

  • Strong credentials and deep practical knowledge in using a consulting-led approach to build a global transformation services business. Under his leadership, I expect Infosys to strengthen its consulting capabilities and use them to position the firm as a first-choice digital transformation company. Prior to joining Capgemini, he was senior partner at E&Y and used that financial services consulting team experience to help Capgemini into one of the fastest-growing financial services practices in the services industry. He understands how to blend consulting and delivery in a fast-changing industry will be powerful for Infosys, which must master a more consultative transformation approach if the firm is to emerge as a leader in digital services. Sikka had deemphasized the consulting practice at Infosys.
  • Successful track record in business turnarounds and managing acquisitions (including Capgemini’s acquisition of iGate). In October 2017, I blogged about Infy needing to aggressively acquire digital companies is a key component of its digital transformation strategy. His influence in leading Capgemini’s charge to acquire iGate indicates he understands the necessity of a strong Indian delivery component in the future mix of services.
  • Deep experience in the financial services market, which is Infosys’ largest and most lucrative market segment.
  • Notable experience in working in a global context outside of an Indian firm. Salil’s outstanding leadership capabilities were notable at Capgemini.
  • Deep understanding of the Indian/Bangalore culture along with demonstrated outsourcing industry experience. He will fit well into the Infosys culture and, thus, is a safe choice as CEO.

I think Infosys chose an external candidate to lead the firm to avoid some of the friction and issues lingering from the friction among the board, management and founders. Infosys now needs a steady hand, a more low-profile approach to building its future. Although Sikka raised the firm’s profile in the digital transformation space, he didn’t manage to bring the founders and the rank-and-file employees along. Parekh has the skills to focus on executing on the digital strategy. He will bring a fresh perspective on how to continue Infosys’ drive to remake the firm into the next-generation of services companies based on digital technologies and business models. I also expect he will be instrumental in changing the board composition over the next 18 months to ensure he has a unified board and can heal any ongoing rifts with the firm’s founders.

The fact that Parekh will be based in Bangalore is significant, as it will better position him for deeper understanding of the Infosys culture and enable him to build internal support for the difficult journey ahead in a challenging and changing marketplace.

In Salil, Infosys has found a capable executive that fits the Indian culture, yet brings the consulting and global perspective the firm needs. Thus, he should be able to build alliances in and outside the firm without creating the pushback that Sikka experienced.

What about Other Changes in Senior Leadership at Infosys?

The industry and media are abuzz with speculation on the amount of executive turnover as a result of Parekh’s selection. Every new CEO brings in new executives, and he won’t be an exception to this rule. It’s important to realize that Infosys has plenty of room to remove executives without removing existing talent. Some in the senior ranks had stayed to create stability after Sikka’s departure, but they will now be free to move on. Other senior talent had stepped up on a temporary basis and can now move back to a more sustainable role. That said, I don’t expect a wholesale removal of the firm’s senior leadership. It will be a case of streamlining the leadership team and restructuring some layers.

Should the Infosys Strategy Change?

Together, Parekh’s experience and the Infosys board’s forward-looking statements indicate that the existing digital direction and strategy that Sikka was driving will continue. I believe the firm is well positioned to participate in the consolidation of the legacy, high-margin labor arbitrage-based business. This is already taking place in the services industry, and I expect Infosys will capture a significant share of this work. However, I believe the primary goal is still to continue the digital transformation journey.

In the effort rebuild Infosys to lead in the digital marketplace, I suggest Infosys take the following five steps:

  • Build strong support from the board/founders and internal organization, A house divided will fall, and we have already seen what this will do to the organization. As I mentioned above, this will probably require changes to the board and some changes in senior leaders as well as taking a more low-key approach (at least at the outset).
  • Reset investor expectation on margins. The previous strategy’s fatal flaw was maintaining the expectation of industry-leading margins. To become the leader in the digital space, Infosys needs margin flexibility to experiment with new models and capture growth at the all-important start of the cycle.
  • Focus on understanding and building a new digital delivery model that is different from the factory arbitrage model. It’s important to recognize that this new model has yet to fully emerge in the services industry; therefore, if Infosys can be the first major firm to build such a model, it will become the industry leader.
  • Keep the commitment to aggressive pricing established under Sikka. The market will not tolerate a premium pricing position at this time.
  • Focus on its clients instead of the firm. Infosys has traditionally been introspective. Parekh looks to be capable of changing this characteristic and influencing the firm to look outside to its customers and their needs. Now, much of Infosys’ messaging is on how Infosys is changing. This needs to change to focus on how its clients are changing.

For all the above reasons, I believe Parekh is notably able to grow Infosys’ business. I don’t think he will bring clients with him, but I don’t think this is necessary. Infosys has all the clients it needs. The challenge for Infosys today is to become the digital transformation partner of choice for the clients it already has. If he can help achieve this objective, I believe Infosys will become a clear leader in the new emerging services market.

Infosys’ new CEO Salil Parekh has challenging task on hand | In the News

In many ways, Infosys has pulled a rabbit out of its hat by appointing Salil Parekh as its CEO and MD who will take over his new position on January 2.

A member of the Group Executive Board of the Euro 12.54 billion French consultancy major, Capgemini, Parekh was never seen as a front-runner for one of the most coveted jobs in the Indian technology space.

But his track record shows that Infosys couldn’t have picked a more suitable person to head the organization. Parekh was at the forefront of the acquisition of the company he worked for, Ernst & Young’s consultancy division by Capgemini in 2000 and was widely credited for bringing scale and value to the Indian operations of the consultancy firm. In 2015, he led from the front for the acquisition of i-Gate for $4 billion.

Peter Bendor-Samuel, the CEO of Everest Group, an advisory firm Capgemini told an Indian newspaper in 2015 that Capgemini has realized 10 times more growth than what Parekh had promised Pierre-Yves Cros, the chief development officer of Capgemini.

Read more in The Hindu Business Line

I’m happy Infosys has appointed Parekh as Chief. My best wishes to him: NRN | In the News

Infosys said today that its Board of Directors has appointed Salil S Parekh as Chief Executive Officer and Managing Director (CEO & MD) of the company effective January 2, 2018.

Peter Bendor-Samuel, CEO, Everest Group, said: “I think Salil will do a fine job as CEO at Infosys, he was an unexpected selection, however, the board has selected a talented industry executive who is well positioned to continue the existing Infosys strategy. He is not as flamboyant as some of the past Infosys executives but brings experience in building a consulting lead global service transformation business which leverages Indian talent.”

Read more in moneycontrol 

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