On asking questions about new strategies of the company, Nandan Nilekani, non-executive Board chairman and co-founder of Infosys, delineated the broad strategy for the company going forward. Some issues which were taken up when he returned to the company this year were also enlightened by him.
The co-founder is also known as the architect of India’s biometric identity program, Aadhaar, welcomed few questions on strategy, but he preferred to let drop little about the internal on goings at the second largest software exporter of the country.
Vishal Sikka’s exit in August, has made the company to search for a new chief executive and the company has made some “decent progress” in the task as confirmed by Nilekani in a media interaction after the results of second-quarter.
He also made some statements about the meetings of shareholder and told the media that the first round of the meeting has been concluded. He further added, “This process will continue into this quarter.” Also, in January, the new report will be presented along with the third quarter results.
The company had to go through some tough time in the past months and the co-founder appreciates the management team for behaving calmly while carrying out the business effectually.
Doctoral Research Scholar of Aston Business School, UK, Sanjoy Sen said, “It’s (Infosys’) refreshed strategy now puts its focus on consultancy and business transformation ahead of its focus on software, recognizing that software is only an enabler to implement its transformational solutions for more profitable growth.” He also added, “Marketplace focus is reiterated by continued large global wins including GST – the largest tax project around the globe.”
On talking about the macro issues facing the IT industry together with the customer-led innovation that is deranging the established industries across the globe, Nandan Nilekani said the strategy of “software plus services is very valid”.
For Infosys, Sikka has foreseen the software and the services model. They involve the use of technologies for instance artificial intelligence and for the delivery of the services to the clients, greater automation has been used.
According to Nilekani, thing which made the key difference was execution.
The media asked the non-executive board chairman, whether the company is going to have a shift in its power center from Palo Alto post to Bengaluru after the exit of Sikka, Nilekani said, “Palo Alto continues to be a very vital part, a listening post of latest developments in Silicon Valley… the challenge is how to take these modern technologies to our customers.” He also said, “We have the right team and leadership to take advantage of these recent technologies.”
He did not exclude more attainments that could help achieve the company’s vision to use more automation.
However, according to the Board there was “nothing wrong” in the Panaya acquisition, which was a burning issue at that time, and the founder NR Narayana Murthy along with ex-CEO Sikka, were under question from investigators.
“The next few quarters will be extremely critical for the company and will require delicate handling to say the least.” Sanchit Vir Gogia, the chief analyst and founder at Greyhound Group said, “The new management has to go out of their way and keep focus on what matters – client outcomes, employee happiness and investor returns.”
Garg said, “Long term, the dangers of being irrelevant also loom high-the fact is that Vishal was instrumental in bringing through the much-needed change in culture and strategy.” “With his departure, Infosys must go the extra mile to communicate and convince their stakeholders of their focus on being relevant in the future,” Garg added.
Lowering in the full year growth of the company was highlighted by the analysts and it is a concern for them.
Despite of all these impediments, the company is expecting to grow about 5.5-6.5% in the current fiscal year, as compared to the 6.5-8.5 percent growth in the last budget year.
The overall growth of the IT industry is assumed to be around 7-8 percent this year.