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Like India, Infosys Needs A Shot In The Arm (and Now)!

India has only recently finished the most significant federal elections witnessed in the past few decades. Not only did the elections bring out the clear winner in Narendra Modi, it has also worked like a shot in the arm for country’s economy.  A recent study by ASSOCHAM confirmed that this new wave of leadership for India is expected to double foreign investments to US$ 60 billion. This is surely a major boost from the distressed condition of the Indian economy under the previous Government.

Multiple parallels can be drawn from the above to the current state at Infosys. The much adored firm and a flagship of the Indian IT Services community is being faced with multiple challenges and receiving intense heat from stakeholders across the board. Below are some quick highlights from Greyhound Research on the current state of affairs at Infosys.

  • NRN’s come back and recent senior level exits are nothing short of a crisis. NRN’s comeback to Infosys not only signified troubled times at Infosys; it also spoke at length about the failure of existing management to bring about change. The recent series of senior level exits only amplifies this issue and speaks of the brewing conflicts internally at Infosys. This raises serious doubts on the broader health of the company.
  • Clients want change…in the true sense of the word. Greyhound Research has spoken to multiple marquee Infosys customers over the last two weeks and two consistent views have emerged – 1) the need for Infosys to step out of their comfort zone and acquire companies that help bridge the service offerings gaps, and 2) clarify reasons for the recent series of senior level exits and offer definitive guidance on the new management to win back client confidence.

Greyhound Research Perspective – The need of the hour is a shot in the arm for Infosys!

  • Hire a leader who understands the Infosys DNA and can appease the stakeholders. To overcome the recent negative market sentiment, Infosys must hire a leader who truly understands the evolving IT Services landscape and most importantly, the Infosys DNA. While the market has been abuzz with Infosys board contemplating an external candidate for the CEO role, Greyhound Research believes it’s critical that this individual is well versed with the Infosys DNA – the company is at a critical juncture and the new honcho must understand the internal dynamics and the issues surrounding the company. While an external candidate can help bring in new perspectives, the gestation time for this individual to deliver outcomes can cost Infosys a few more senior executives and clients.
  • To win back client confidence, Infosys must invest in a team that stays and delivers. Greyhound Research believes Infosys must onboard a team equipped to understand (and respond) to the rapidly changing IT services landscape. While a new leader can help set a new vision and path for the company to follow, the second-tier management and other key executives will ultimately make the new vision a living reality.

What’s your Standpoint?

Do you think Infosys is in trouble and needs to revamp its strategy to come back seriously in the game? Or do you think it’s time that Infosys will be acquired by another Indian IT Services provider?

Leave a comment and share with us your experience or send me an email on sgogia@greyhoundgroup.com.

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Note for Vendors and Providers – Did you see our Research Agenda?

Do check out our extensive research schedule that covers a vast variety of topics including new-age business themes, disruptive technologies, business and technology roles. Please write to me on sgogia@greyhoundgroup.com and we’ll gladly share a copy of the research schedule with you.

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SVG 200x200About The Author: Sanchit Vir Gogia is the Chief Analyst & CEO of Greyhound Research, an independent IT & Telecom Research & Advisory firm. He also serves as Founder & CEO of Greyhound Knowledge Group that operates under four brands – Greyhound Research, Greyhound Sculpt, Greyhound Technocrat and Greyhound Vivo. To read more about him, click here.

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