Infosys Names Salil S Parekh as CEO
Indian software-outsourcing giant Infosys named outsider Salil S Parekh as CEO, ending the company’s search for a new leader after previous head Vishal Sikka quit following criticism from a group of founders, according to Bloomberg.
Parekh, a member of the executive board at Capgemini with degrees from the Indian Institute of Technology and Cornell University in the U.S., has been appointed CEO and managing director for a five-year term that starts on Jan. 2, Infosys said in a statement.
Sikka had walked out in August after clashing with founders, led by former chairman Narayana Murthy, who had run the business for three decades. Infosys is also being buffeted by changing technologies, and needs to switch from basic paid-by-the-hour activities like building software systems, which are fast getting automated, to higher-margin areas like digital services.
Current Chairman Nandan Nilekani said Parekh “has a strong track record of executing business turnarounds and managing very successful acquisitions,” backed up by 30 years of experience in the global IT services industry. Nilekani, the co-founder of Infosys, had returned as chairman after Sikka’s exit and recast the board, soothing investor and employee concerns and bringing a degree of stability to the company. Pravin Rao, who had stepped in as interim chief, will become chief operating officer and whole time director.
At Capgemini, Europe’s largest IT-services firm, Parekh had responsibility for an application-services unit that produced about half of group revenues. Ashutosh Sharma, research director at Forrester Inc. in New Delhi, said his appointment should close a “chapter of uncertainty” and re-energize Infosys in markets beyond North America, where outsourcers get the bulk of sales.