Monday, April 29, 2013

Infosys 3.0 under Shibulal ..

I could only hope the best for Infosys, but somehow that is not happening.

Referring to an article in the April 26 2013 issue of Economist, it was a bit depressing. The article is talking slightly negative of the impact of the CEOship of Shibulal to the Infosys brand. shibulal taking up the assignment as the last of the Infy founders on the driving seat, especially when the economy is "difficult", has an impact. Shibulal is testing the waters.

Economist also quotes that during this same tough times TCS of Tata Sons is doing much better and reporting healthy profits.

The article says that if Infy is willing to compromise on the profits to get future business, it can come back to good health. This affects Infy image which it has been nurturing for many years, that of being a premium player and creating a hype around its processes and service.

The article highlights bad operations management on the part of Infy to be the cause of all problems. Issues with financial sector customer's demand, sequencing customer order wins, spending patterns of clients and the US Immigration rules which prevents them from moving their employees across the world have been highlighted.

As a company which for the first time brought Indian professionalism to the forefront of the world and made it known that professionally run firms can also do it better than family run businesses, Infy cannot go down. The two co-chairmen at the top may be making the running a bit toght for the CEO, stressing on whom to listen to, violating the basic principle of unity of command.

Indians do believe strongly that Infy will come out successful in a short time, given that Shibulal is the last of the founders on the hot chair ( and he deserves a chance to lead the company he co-founded) and the others to follow will all be professionals selected on the calibre and potential from the wide array of managers available in the country and from abroad.

And if Infy moves from the software services model to software product model, the future will indeed be bright .. (like Google, adobe etc..)

Maybe the coming year we can expect to see Shibulal taking lot of risks and in a highly competitive business world, cut the margins but get the needed volumes.

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