Infosys diluted focus on meritocracy, accountability: Narayana Murthy
Addressing shareholders for the last time as Executive Chairman, Murthy, who earlier this week announced that he along with his son Rohan have decided to step down full four years ahead of their term, said his "work was done" and hoped that the new CEO Vishal Sikka would chart a new course without any interference from founders.
"...Fairness, transparency, meritocracy and accountability are the key to success for any enterprise.
Somehow, the company had diluted its focus on meritocracy and accountability during the last decade," Murthy said at the 33rd Annual General Meeting (AGM) here.
Describing Sikka as a technology visionary, Murthy said he had carried out the mandate that the Infosys board had accorded him about an year ago.
Sikka, whose appointment was announced on June 12, was not present at the Annual General Meeting as he was on his way to the US.
Thirty-three years since its inception, the Indian IT behemoth appointed its first non-founder CEO in Sikka, who was roped in from outside. Analysts believe this could be the "fresh start" that Infosys needed as it has lagged behind peers like TCS and HCL Technologies.
Murthy, who founded Infosys along with six engineers in 1981, bid adieu to the over USD 8 billion entity for the second time. He was called back from retirement last June.
Defending his decision to bring in his son, Rohan, Murthy said he wanted to bring in a "fresh perspective to the field" and focus on the use of "technology and high quality people."
Murthy will continue as non-Executive Chairman till October 10, after which he will be designated as Chairman Emeritus.
Emphasising that Infosys will continue to be a technology company, Murthy highlighted the various efforts that the company is doing for automation and improving the quality of its employees.
"We have started initiatives to introduce automation... we will soon start fast-track career programme for high performers, technology stream programme for architects, designers," he added.
The company has hired many engineers at entry-level in sales and is also working on improving training programmes and assessment process for employees to improve software delivery.
On the senior-level exits, Murthy said: "Some of those who left were low performers, some were seniors who had higher aspirations. Those who had to be retained were retained," he said.
In
the
past
one
year,
Infosys
has
seen
exits
of
former
CFO
V
Balakrishnan,
Americas
head
Ashok
Vemuri
and
President
B
G
Srinivas.
Other
key
exits
include
global
sales
head
Basab
Pradhan,
Infosys
consulting
head
Stephen
Pratt,
BPO
sales
head
Australia
Kartik
Jayaraman
and
BPO
Head
Latin
America
Humberto
Andrade.
Explaining
the
rationale
behind
his
move,
Murthy
said
he
had
set
upon
identifying
performers
and
non-performers
upon
his
return.
"I set upon identifying performers and giving them opportunities to lead the resurrection of the company and identifying not so well performing people and moving them to tasks they were best suited for," he said.
Murthy added that every decision was approved by the senior management.
However, former Infosys official Mohandas Pai attributed the exits to lack of empowered senior managers.
"Lack
of
empowerment
of
senior
managers
is
the
reason
the
company
failed
in
the
last
three
years.
The
people
who
left,
they
are
doing
extraordinarily
well,
wherever
they
are,"
Pai,
who
held
the
finance
and
HR
responsibilities
at
Infosys
said.
Pai
said
that
he
was
hopeful
that
Sikka's
appointment
could
turn
things
around
for
the
firm,
once
a
poster
boy
for
the
USD
118
billion
Indian
IT-BPO
sector
as
the
"founder
raj
has
come
to
an
end".
Stating that the CEO selection process was "second to none" in transparency and rigour, Murthy expressed hope that Infosys will "once again reach its glory" becoming a top technology firm in the world.
PTI