Published by compdiskinc on September 2, 2017

No truth in Narayana Murthy, Nilekani stake sale reports: Infosys CEO Vishal Sikka

No truth in Narayana Murthy, Nilekani stake sale reports: Infosys CEO Vishal Sikka

Infosys CEO Vishal Sikka denied Friday reports that the technology giant’s founders led by Nandan Nilekani and Narayana Murthy looking to sell their stakes.

Murthy has flatly denied and I think we should leave it on this, Sikka told CNBC-TV18 in an exclusive interview. “I have great confidence for them (founders) and I respect them,” he said.

Governance issues

Sikka said the Infosys board works on corporate governance issues raised by the founders. “There was a lot of communication (between the board and the founders),” he said. An advisory panel ensures a high bandwidth connection between the board and the founders for a transformation work that Infosys is trying to do, he added.

In January, Murthy and other founders have expressed concern about IT governance standards in major IT and suggested integrating people based on the value of the company. Dismissal folders given to former chief financial officer Rajiv Bansal and Attorney General David Kennedy were also interviewed.

Dismissals and substitutions

IT industry knows many declines in recent years due to global and national uncertainties that are pushing companies to reduce their workforce. Jobs are also lost to automation.

In the midst of talks with Infosys planning to hire 10,000 Americans to meet the strictest H-1B visa standards, Sikka said there is no redundancy in India. “The rumors of 10,000 recruits to replace the American Indians are not true,” he said. The company has been working on a plan to hire 10,000 agents for a year, he added.

Infosys is “hiring people” and will continue to be a “job generator”, Sikka said, adding that the US Still represent an excellent opportunity for Infosys – “the need is a new technology, more local people”.

2020 mission

Infosys has not set aside its target for profitability by 2020 but the company may not be able to reach a turnover of $ 20 billion over the next three years, Sikka said. The goal proposed three years ago was ambitious and a means to advance the growth of vehicles, he added.

“We are clear that we should not sacrifice margins to reach the 2020 target,” Sikka said.

Request for cost reduction

Sikka also said that there was nothing new in what Infosys president Praino Rao said the pressure on prices in the corporate market.

About 65 percent of the active population work at 55 percent of income, while 35 percent of the workforce produces 45 percent of income, Sikka said. The transformation part of the business (construction) has a lot of opportunities, he added.

The transcript of the interview.

Q: Let me ask you a question about today’s title, which however was rejected by the founders of Infosys, the possibility of the founders of Infosys to get out of business. Do you have information on where it comes from? Was there a conversation he had with the founders of the possibility of all this?

A: I have no idea where it came from. Murthy has flatly denied it and I think we should leave things that way and not extend it further. This is what I also mentioned in my answer and the response of our companies.

The founders are people with unbelievably distinguished success. It’s been three years since he was announced as CEO and what they did is something extraordinary. However, three years later, I have considered it is surprising that they did. So everything they do is something that I have a very deep trust and respect. However, it is obvious that they refused and I think we should leave it at this and not stretch it further.

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