This refers to the editorial “Narayana Murthy 2.0” (June 3). Infosys was the IT industry leader in both corporate governance and corporate social responsibility for many decades because of the able stewardship of N.R. Narayana Murthy. But the IT major failed to see the innovations in the field and did not infuse new blood in its governing body. .
Infosys should shed its old-fashioned strategies and update its skills. Let us hope that with the re-entry of Mr. Murthy as Executive Chairman, Infosys will regain its position in the IT.
Mr. Murthy has accepted the distress call from Infosys, the company he founded, nurtured and transformed into a software giant. A retired chairman called in to take control of the same company because of its slipping fortunes is unprecedented. It is to be seen how Mr. Murthy reclaims the lost ground in the changed circumstances at the national and international levels since he retired two years ago.
Infosys’ relentless focus on margins in a difficult environment when clients were keenly monitoring every penny spent on IT has led to this sorry state of affairs. While the competitors were cashing in on the low-margin high-volume business, Infosys chose to keep itself out of this business segment. While there may be sound business reason to opt for such a strategy, it significantly affected the company’s performance.
Although Mr. Murthy’s leadership at this juncture would help steer the Infosys ship in the right direction, I find it hard to believe that the company struggled to attract outside talent before settling for him.
For a globally traded public company, Infosys reminds me of a tightly knit family run Indian business. The return of Mr. Murthy, along with the induction of his well educated son as his executive assistant, reinforces its Indian roots and sends a clear signal that the next generation of leaders is being groomed from the dynasty.