Thursday’s developments at Infosys, which sent share prices surging in early trading only to settle later, have been largely welcomed by analysts and industry experts.

Apart from welcoming Vishal Sikka, seen as an experienced technologist who has led successful projects in the global tech arena, many analysts have said that the stepping down of co-founder N.R. Narayana Murthy, and his son Rohan Murthy, are huge positives.

This will avoid complications within the management structure and will retain one core power centre enabling quick and bold decision making, many analysts said.

An analyst from Religare Market Pvt. Ltd. said that the stepping down is positive as it “gives Vishal a free hand to drive the company in a certain direction without creating multiple power centres.” Jaideep Mehta, VP, IDC South Asia, said that Mr. Sikka being well-versed and keenly aware of international tech markets is a big asset.

Plain vanilla

“The IT services industry is going through a transformation from plain vanilla to platform and IP based services. With his extensive experience in SAP, and especially the success he had in recent years with HANA, Dr. Sikka already has a deep understanding of where Infosys needs to go,” Mr. Mehta said. He added that he will be able to add new management talent to strengthen Infosys’ depleted management bench.

Cautious stance

However, some chose to be cautious about recovery. Deutsche Bank Market Research analyst said that while the development is positive, investors will now seek direction and clarifications from new management on addressing attrition and loss of business and strategic vendor status from existing customers impacting revenue growth.

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