According to the company press release with starting of new year January 2018 Infosys India’s second largest IT service company has made its choice in Salil Parekh, the man behind build- up of Capgemini’s will be MD and new CEO. Describing what going on as just another CEO hunts for Infosys it will be trivializing the massive disruption starting India’s over $100 billion IT industry. The question also arises as to whether Infosys finally got right leader past few years at company shown many changes in administration level 3years after founder of India’s most iconic software startup, Infosys appointed Vishal Sikka as the first CEO. While that transition proved equally ugly with Narayan Murthy himself facing management and going forward for bringing company clean with Sikka resigning this year. After Sikka’s exit, many in the industry, especially Infosys rivals, mocked at the handling of a non-founder CEO and said the company will go back to the safe option of trusting an insider with the top job, as appointed of Nandan Nilekani but he equally proved all wrong and not giving up on the bold quest. However really thing is how many CEOs in Infosys away before it becomes a next generation software company and challenge Accenture, Google and Amazon.
With Infosys pick- up new in as CEO Salil Parekh53 years old, incidentally came from Capgemini where he was key leader in that practice, an IIT Powai aeronautical engineer with Master’s in computer science and mechanical engineering from Cornell University.Unlike IBM and Accenture, which recognized India’s, potential early in the late 90’s and early part of the 21st century, Capgemini was slow in getting off the ground here. This was critical as having a large number of talented employees in a low-cost destination like India was critical to the success of a number of these multinationals. After a late start, it was under Parekh’s leadership that Capgemini began to scale in India. Today Capgemini which has revenues of about $15 billion and 190,000 employees has roughly a third of its headcount in the Indian operations. It was aided by the iGATE acquisition too which had a large India base. Parekh was credited with the smooth scaling of Capgemini in India in spite of a late start and playing a key role in the iGate acquisition. He was richly rewarded for this. He was eventually made the deputy CEO of the insular French company and even inducted into the group management team. Salil has primarily expertise in the European market where Capgemini has a large footprint.
While as incoming CEO of Infosys Parekh will have major three problems handy to tackle, as to create more valuable company, return cash to shareholder or to start with new set of owners.Unlike his predecessor, who got into a messy stuff with the firm’s still-powerful and influential co-founders, Parekh will have some latitude to choose his strategy. For one thing, he has the right experience, having spent 25 years at Ernst & Young LLP, then at Capgemini SE, where he oversaw the integration of IGATE Corp. North America is now Capgemini’s largest market, where Parekh leads the fight against International Business Machines Corp., Hewlett Packard Enterprise Co. and Accenture Plc., as well as the Indian players. Though given that the 53-year-old intimate knowledge of the traditional off shoring industry and the existential threat it faces from so-called SMAC — social, mobile, analytics and cloud computing. But at the same time being an outsider puts Parekh above the founders-versus-board fracas that culminated in the abrupt departure of Vishal Sikka, the company’s first non-homegrown chief executive. The senior talent that had followed Sikka from SAP SE has mostly left, giving Parekh a clean slate to script his five year term as CEO. He takes over at Infosys during a challenging time in the company’s 36-year history. His ability to get growth back at Infosys, improves morale, navigate issues with promoters and senior talent at the company, will be what observers will be watching. Salil will certainly be on edge as his term progress.
As per PTI sources.