SME Times is powered by   
Search News
Just in:   • AI-first approach will transform our lives: Satya Nadella  • Facebook to remove posts that spur violence  • Two key Apple executives quit amid Siri reshuffle  • NAFTA renegotiations to resume in Washington  • Jindal varsity signs MoU with Harvard on academic collaborations 
Last updated: 21 Aug, 2017  

vishal-sikka-infosysTHMB.jpg Sikka's exit from Infosys unfortunate but not unexpected: Experts

vishal-sikka-infosys.jpg
   Top Stories
» Monsoon session of parliament begins Wednesday
» 14.62 mn tourism sector jobs created in last 4 yrs: Minister
» Naidu concerned over disruption in Parliament
» Robust corporate bond market must for 8% growth: Study
» Prabhu woos Omani investors, discusses SME cooperation
IANS | 21 Aug, 2017
A day after the dramatic departure of technocrat Vishal Sikka as Chief Executive of Infosys, industry experts on Saturday said while his exit was unfortunate, it was not unexpected as he became an unintended victim of the boardroom battles with the co-founders.

"Sikka's sudden resignation is unfortunate but not unexpected. Though the co-founders have not questioned his performance in driving the growth, his exorbitant salary and expenses incurred on him by the company did not go well the promoters, especially N.R. Narayana Murthy," Professor Aditya Jadhav of T.A. Pai Management Institute told agency in Bengaluru.

Admitting that there was also a cultural clash between the promoters and Sikka as the company's first non-founder executive over the style of his functioning, Jadhav said as the former had a large ownership and earned huge dividends, it allowed them to draw lesser salary whereas higher pay package for Sikka was justifiable in the absence of same dividends for him.

"Institutional investors who collectively own 68 percent of the company's stock have shown solidarity with Sikka. But the founders, who jointly hold 13 percent of the stock, have been critical of Sikka's flamboyant style of functioning as their successor Chief Executive," noted Jadhav.

Jadhav also regretted that the founders used their clout and stand in the IT industry to question the ethics of Sikka, which forced him to call it quits.

Institute of Finance and International Management (IFIM) Secretary Sanjay Padode, on the other hand, said Sikka was a cultural misfit for Infosys, a bootstrapped organisation that was built by the promoters' conviction in highest standards of corporate governance, frugal innovation and quality delivery.

"Sikka's experience was in the area of technological innovation and driving business through strategic interventions. His exit was inevitable going by the adage of Peter Drucker's culture eats strategy for breakfast," asserted Padode.

HDFC Securities Head V.K. Sharma said though the software major did better than the industry during Sikka's three-year embattled tenure, his ambitious $20-billion revenue target by 2020 was far-fetched, as it took over three decades for the company to cross $10 billion in fiscal 2016-17.

"Sikka's allegation that he was continuously being distracted does not wash, as he had long enough a honey moon period to make his mark," quipped Sharma.

Research firm Angel Broking's Vice-President Sarabjit Kour Nangra said Sikka's exit would be a setback for the outsourcing firm in the near term.

"Given the company size and strength, we believe that it will overcome the setback in the long run.

"Given the valuations, we maintain our 'buy' rating for the company's scrip," Nangra said in a statement here.

According to Ascent HR Chief Executive S. Subramanyam, Infosys succeeded as an enterprise in services and execution under Sikka.

"As a globalised economy looks for innovation and digital technologies, Sikka sought to change a traditional software services company into a disruptive technology provider with automation, artificial intelligence, machine learning and data mining as its growth drivers," noted Subramanyam.
 
Print the Page Add to Favorite
 
Share this on :
 

Please comment on this story:
 
Subject :
Message:
(Maximum 1500 characters)  Characters left 1500
Your name:
 

 
  Customs Exchange Rates
Currency Import Export
US Dollar
66.20
64.50
UK Pound
87.50
84.65
Euro
78.25
75.65
Japanese Yen 58.85 56.85
As on 19 Jul, 2018
  Daily Poll
Is counterfeiting a major threat to SMEs?
 Yes
 No
 Can't say
  Commented Stories
» Starting an import export business: Basic guide for beginners(11)
» Review of Companies Act 2013: A welcome step(9)
» Tech exchange centre launched for Indian, S Korean MSMEs(1)
» Muthoot Finance Starts Mobile Surveillance Squads (1)
» RBI, FinMin must work together for rupee stability: Assocham(1)
 
 
About Us  |   Advertise with Us  
  Useful Links  |   Terms and Conditions  |   Disclaimer  |   Contact Us  
Follow Us : Facebook Twitter