SummaryThe last one year has been one of the most daunting periods for Infosys, coinciding with the return of NR Narayana Murthy as executive chairman in June 1, 2013.
The last one year has been one of the most daunting periods for Infosys, coinciding with the return of NR Narayana Murthy as executive chairman in June 1, 2013.
This was a time when India's second largest IT services exporter came under the spotlight for the exits of several senior management executives, including CEO contenders V Balakrishnan and BG Srinivas, and a revenue growth performance which lagged the industry benchmark.
Now under Murthy, Infosys is charting a turnaround strategy with the hope and promise that it will regain old glory as the bellwether of the Indian IT industry. The Infosys chairman, in a letter to his employees last week, said: �In FY15, it is extremely important that we sustain this growth momentum. We have adopted a simple formula for growth � chase more opportunities, increase the size of those opportunities, improve win rates and improve demand fulfillment. I believe we are a great team full of passion and brimming with so many smart ideas."
But the optimism is not reflecting in the numbers. The performance of Infosys for FY14 ever since Murthy's return has not been consistent. From sequential revenue growth of 2.7% in Q1 of FY14, it rose to 3.8% in Q2, but in the remaining two quarters it has been a steady decline, with the fourth quarter posting flattish growth. Also, the company expects to grow in the range of 7-9% for FY15, which is lower than the FY14 growth rate.
The circumstances of Murthy's return to Infosys were no less dramatic. It was least expected, after CEO Shibulal's 3.0 strategy failed to cut ice with investors. The performance of Infosys had showed a steady downward trend since 2011 when it grew by 26% in FY11 but had touched a low of 5.8% in FY13. �Son Rohan Murty had joined Murthy senior at Infosys as his executive assistant.
Upon his return, Murthy immediately ensured a salary hike in the range of 8%, which was kept in abeyance for a year. This also found a strong resonance with the employees prompting Murthy to state thus: �When I came back, I noticed we had not increased salaries for our staff in India particularly at the middle and senior level for two years and we had not increased salary for anybody in India for one year. The first thing I did within a week of my coming back was to ensure that all these
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