Five Infy watchers spell out the challenges that the company and NR Narayana Murthy will have to face up to
For someone who had a dream First Innings, NR Narayana Murthy may find that the playing pitch in the Second Innings may be quite different. Somewhere between the time he bid goodbye to Infosys and now, the leadership of the company he founded dropped the ball just when the game was getting more competitive.
In a difficult operating environment, Infy’s rivals proved to be more nimble and adaptive, forcing the company to lose traction both with customers and investors. Despite having a good strategy to move up the value chain, the leadership failed to execute Infosys 3.0 well. Worse, it also started losing its grip on bread-and-butter businesses like application development and maintenance while chasing margins—a point Murthy himself acknowledges.
Can Murthy rescue Infy from the morass it got itself into? Forbes India asked five close Infy watchers what the company’s challenges were and what Murthy needed to do to turn it around. Here’s what they said. Read on.
Real Transformation or Symbolism?
Will the return of Narayana Murthy solve the challenges Infosys is facing?
By Sudin Apte
CEO & Research Director, Offshore Insights Research and Solutions
Challenged by multiple issues—ranging from employee morale to lacklustre performance—the Infosys board has, finally, resorted to its founder and first CEO/chairman NR Narayana Murthy. On June 1, the board appointed Murthy as the executive chairman.The hopes are high. Everybody—employees, investors, board—expect Murthy to swing the magic wand and turn around the company, that too quickly. Will he succeed? I believe there are four areas where the company faces challenges today. Our analysis shows that Murthy will bring back, almost instantaneously, employee and investor confidence, but getting the company back on a growth trajectory will be a long journey.
The Old New Boss Must Rev up the Sales Engine
Infy needs to reset its margin targets in short run
(This story appears in the 28 June, 2013 issue of Forbes India. To visit our Archives, click here.)