In the eighth high-profile exit from Infosys since co-founder N.R. Narayana Murthy returned as executive chairman with his son Rohan in June, V. Balakrishnan, head of Infosys BPO, Finacle, and India Business Unit and chairman of Infosys Lodestone resigned on Friday.
Balakrishnan, who joined Infosys in 1991, was seen as a strong contender to succeed chief executive officer S.D. Shibulal, who will retire in 2015. The resignation is effective December 31, 2013, Infosys said in a statement.
There has been talk in industry circles about a lot of heartburn in the top management over Rohan's role in the organisation. However, Balakrishnan played it down saying, "Rohan's future role in Infosys should not be a cause of concern to anyone."
Balakrishnan added that he would be starting a private equity fund in partnership with former Infosys director Mohandas Pai and is waiting for approval of the Securities and Exchange Board of India.
Biocon chairperson and managing director Kiran Mazumdar-Shaw, who was inducted into the Infosys Board as an independent member on Friday, told a news channel that these exits are part of the big changes happening at Infosys after Murthy's return insisting there is no cause for concern. Besides, U.B. Pravin Rao has been inducted as a whole-time director. Rao is currently a member of the executive council, senior vice-president and global head of retail, con-sumer packaged goods, logistics and life sciences.
"This exit is in line with the several senior-level departures seen in the firm, which indicates that senior leaders do not see a clear strategic direction, and that the firm struggles to find its feet in terms of what it wants to do in strategy," said Ankur Rudra, analyst, Ambit Capital, Mumbai.
"We need to watch the company a little more closely as hav-ing seen a fairly good number of people already leaving," said IV Subramaniam, chief investment officer, Quantum Asset Management, which holds about $1.7 million worth of Infosys stock. According to sources, Balakrishnan's resignation leaves only Board member B.G. Srinivas among the main internal candi-dates to succeed Shibulal.
Courtesy: Mail Today
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