Thursday, December 19

Feedback From Clients Positive, Reassuring: Infosys

IT major Infosys today said the feedback from its clients and stakeholders, despite weeks of acrimony between the founders and former board members, has been “positive and reassuring” and it is now focusing on executing its strategy.

The Bengaluru-based firm has been in the eye of a storm over the past few months, with the two sides clashing over allegations such as corporate governance lapses and irregularities in Infosys USD 200-million Panaya acquisition.

“Since Vishal left and Nandan came on board, we have had a massive outreach. We have talked to all the stakeholders, clients and employees,” Infosys interim CEO and MD U B Pravin Rao said at the Citi Global Technology Conference 2017.

He added that the company has also reached out to investors and industry consultants and “more or less, the feedback has been extremely positive and reassuring”.

Rao said Nilekanis return has brought in a sense of stability at the board level.

“Nandans primary focus as the non-executive chairman is more on the board governance, board oversight but at the same time, he will also be tasked with CEO succession planning,” he added.

On August 18, the then CEO Vishal Sikka quit Infosys, citing slander. The following week saw the exit of four board members, including Chairman R Seshasayee, who had blamed co- founder N R Narayana Murthys “misguided campaign” for Sikkas abrupt exit.

Co-founder Nandan Nilekani was named the non-executive Chairman in a move that was seen as the company bowing to the demands of co-founders and large institutional investors.

Referring to Sikkas exit, Rao said while many clients were “sad” to see him go, at the same time, they acknowledged the fact that “relationship between both the organisations lasts beyond individuals”.

“Once we gave them a reassurance of continuity in strategy and stability, they were fairly comfortable,” Rao added.

Asked if Infosys would change its revenue guidance for the year, Rao said there were still three weeks to go in this quarter and that focus currently is on strategy execution.

Infosys expects its revenue to grow by 6.5-8.5 per cent in constant currency during FY 2017-18.