Infosys releases 9000 employees as automation kicks in
Infosys stated that it has released 8000-9000 employees in the last year as it has begun automation of lower-end jobs. Infosys HR head Krishnamurthy Shankar said "we have been releasing about 2,000 people every quarter and also training them in special courses that will help them in their new assignments." The company's total employee strength has reduced to 1,99,763.
Infosys is one of India's biggest software companies, headquartered at Bengaluru, Karnataka. The company is also one of the world's leading software exporters. Founded in 1981, it is pitched to be the second largest Indian IT company in terms of revenues earned. The company, currently led by Vishal Sikka at the helm, has a market capitalization of $42.5 billion.
Infosys EVP Sanjay Purohit resigns
Last month, Infosys's Executive Vice President, Sanjay Purohit left the company. Purohit was pitched as the seventh Executive Vice President to leave the IT services company, according to reports. Purohit was heading strategic initiatives for the company along with Pravin Rao, who serves as the Chief Operating Officer for Infosys. A replacement for Purohit had not been finalized then.
Sanjay Purohit's role in the tech giant
Infosys's website states that Sanjay Purohit has over 25 years of experience across cross-initiatives and starting up new businesses, and enabling innovation across business models. He has also been in the midst of leadership development for the company. Purohit's role saw him responsible for the development of Infosys's business operations across 20 countries, and required him to target new sources of business for Infosys.
Infosys facing leadership strife?
Purohit's departure comes in the wake of other senior management exits from the company. Infosys's CEO has also reversed decisions he took on the heads of business divisions in less than 18 months. After Vishal Sikka took over as CEO for the company in 2014, he has made periodic changes in leadership and senior management, leading to questions on his ability to retain management.
Infosys executive on Vishal Sikka's leadership decisions
"The question is not why there are so many exits even after two years, although by now there should be some stability. But why did the CEO appoint leaders in the first place, only to move them out later?" said a senior executive.
Infosys ropes in former executive DN Prahlad
Late last week, Infosys roped in one of its former executives, DN Prahlad, as an independent Director for the company. Prahlad had worked in the software firm from 1986 to 1998, with his LinkedIn profile stating that he had been responsible for managing total revenues of over 35% for the company. After leaving Infosys in 1998, Prahlad founded his own company, Surya Software Systems.
Infosys's appointment of DN Prahlad sees shareholders uneasy
After Infosys appointed DN Prahlad, a former employee and a relative of N.R. Narayana Murthy to the company's board, many shareholders have not responded well to the appointment. Prahlad's Surya Software Systems has also been reported to have engaged in business with Infosys. Infosys responded stating that Surya's business with Infosys's banking platform is not massive, and Prahlad was appointed after obtaining required approvals.
Proxy advisor firms question Prahlad's appointment
"Prahlad certainly seems to be a nominee of the founders. It is clear that by having Prahlad on the board, the founders want access to the board and ability to influence decisions," said Shriram Subramanian, founder and managing director of InGovern Research Services.