close
INDIAN (T)

Salil Parekh looks at talent inside to drive growth at Infy

no thumb


Salil Parekh looks at talent inside to drive growth at InfyInfosys CEO Salil Parekh is leaning more on talent within, including sharpening of digital skills of employees, as he completes his first quarter at the nation’s second-largest software exporter.

Parekh has kept a low profile as the company slowly emerges from an ugly public spat between its founders and management that culminated in the exit of the then CEO Vishal Sikka and chairman R Seshasayee in August last year. He has so far refrained from disrupting the management team with outside hires — a strategy that is in contrast with that adopted by his predecessor and has gone well with employees.

Parekh is also pushing for the adoption of new technologies and reskilling of staff to ensure that Infosys is ready to tap into the opportunities offered by an outsourcing market where services are getting increasingly digital and automated. This approach is helping bring stability back to the organisation, said analysts.

Salil Parekh looks at talent inside to drive growth at Infy
“(Parekh is) not rocking the boat, instead (he is) steadying the ship,” said Phil Fersht, CEO of HfS Research, a global outsourcing consultancy. Parekh, who has a strong edge in consulting, has given a push to digital deals in his engagement with customers. Parekh, who is advised by chairman Nandan Nilekani, is leaning more on internal talent to push growth. There is a clear line for UB Pravin Rao, the chief operating officer, to focus on delivery — a metric where there is an increasing focus within Infosys as it also offers an opportunity to mine more business from existing clients in an uncertain market, said insiders.

“He (Parekh) had a strong reputation driving some key digital deals at Capgemini. I think he will refocus the firm well in the space, especially when considering there is not much of a gap between Infosys and the leading Indian majors,” said Fersht. “With so much hype (on digital), it is not too late to make a strong play in digital with some smart investments and a clear focus and definition on where to go.” Infosys declined to comment, citing the “silent period” ahead of fourthquarter earnings announcement, scheduled for April 13. Parekh is expected to unveil his strategy after releasing the results.

Salil Parekh looks at talent inside to drive growth at Infy
People in the know of the matter said the company is planning massive reskilling of its employees in digital technologies under Parekh’s leadership. “There is a sense that a large chunk of the people has outdated skills and hence the organisation needs to re-skill in a massive manner,” said one of the people who did not wish to be named. When Infosys announced its third-quarter results in January, a few days after Parekh took over, he had called out “people” as one of the critical elements in his strategy.

While Parekh has yet to announce his specific goals so far, Fersht said he has put a lot of emphasis on developing a compelling digital proposition. The focus on AI, as well as design thinking, is not as sharp as during the time of Sikka, Fersht said.

Meanwhile, Infosys is continuing with hiring of American workers, which was announced when Sikka was at the helm. The company recruited more than 2,500 US workers in the past year, a quarter of what it plans in two years. It has also set up two innovation hubs there so far. Analysts said the company’s plan to expand in the US, with president S Ravi Kumar driving its implementation, is a well thought-out move.

“This is more than a political play. The business is in the US and organisations are looking for more local, onsite capabilities to compliment classic offshore play,” said Ray Wang, CEO, Constellation Research.

Sanchit Vir Gogia, CEO, Greyhound Research, said the important point now for Parekh was to show stability with clients. And, another is to continue keeping the low profile. “He needs a couple of quarters to internalise and finalise a strategy. The biggest need to show stability with clients. Also, to keep Infosys out of news,” he said.



Source link