Pink slips for non-performers: Narayana Murthy's mantra to bounce back

New Delhi, Feb 20: Employer of 1.5 lakh people and considered to be one of the top among the IT giants,

may witness a series of pink slip holders from the top rungs now.

To increase the operational efficiency and cut down on the cost, Narayana Murthy (Executive Chairman of Infosys) has decided to ask people to leave if they drew high salaries, but did not add value to the company.

"One of my tasks was to ensure that the identified people who were receiving very high salaries but were not contributing as much as we wanted, were either given opportunities where they can add value to the company or they could seek opportunities elsewhere," he said.

Murthy responsible for major restructuring in company.

Speaking frankly of cost optimism in the company, he further added (as per a report in IBNLive),"Our costs have ballooned very rapidly in the last 2-3 years. For example, on-site compensation was 36 per cent of the overall revenue in 2010-11 and it went up to 46.3 per cent in 2012-13. A part of it was because we hired people at high salaries outside India and these people did not add value to the company."

He cites the reason of hiring high-salaried people outside India who are not adding any value to the company. Murthy, however, did not rule out the option of undertaking measures to enhance the employee productivity. He also highlighted the possibility of shifting more work offshore.

The change in Murthy's approach came when Infosys' revenue growth rate dropped significantly in the past few years, raising concerns among analysts and investors.

Murthy was forced to return to Infosys even after his retirement in June last year to head the firm and bring it back on track. Following this, he reorganised the administrative structure of the entire set-up. This included the exits of top-level executives, including Americas head Ashok Vemuri and BPO head V Balakrishnan.

OneIndia News