London-based Brand Finance, a leading independent branded business valuation and strategy consultancy outfit with presence in over 20 locations across the globe, has called for a quick resolution to the ongoing imbroglio at Infosys so as to prevent lasting damage to the reputation of the brand.
Reacting to the happenings at Infosys in the wake of the resignation of Vishal Sikka as its Chief Executive Officer (CEO), David Haigh, CEO of Brand Finance, in an email response, said: “Continued infighting may result in a drop of brand equity with various stakeholders – from employees to lenders and customers – and thus impact negatively on the brand value.”
Infosys is India’s 4th most valuable brand of 2017, valued at over $6.2 billion.
The brand has been continuously growing since 2013, defending 6th place among IT services brands globally.
‘No cause of worry’
“Although Infosys’s stock value has sharply fallen in the past few days, this does not necessarily need to impact the long-term revenue forecast or mean an immediate drop in brand value,’’ he said. If the current imbroglio prolonged for long, it could damage the brand’s reputation, he felt.
“Great brands need inspiring leaders with vision. Their retirement puts the brand to the test. If it is well-managed, well-structured and offers good products and services, it survives and thrives. Tata Sons went through a turbulent time when Ratan Tata retired in 2012 and a controversial successor was appointed, but the company has been stabilised since a new chairman was installed. Whether Infosys thrives, depends on how robust the management, structure, products and services are, which only time will tell,” Mr. Haigh pointed out.
