As New Infosys CEO, Salil Parekh Has a Herculean Task In Managing Expectations Of Various Stakeholders

Salil S Parekh, the former executive of Capgemini who will take over as the new chief executive officer at Infosys, has an unenviable task at hand. From addressing the stakeholder concerns to managing investor expectations to taking the company through a big transformation, Parekh has a work which is truly herculean. Above all, his relationship with both the founders and the board will be closely watched.

Analysts and sector experts say Parekh’s first task will be to boost the sentiment of all the stakeholders – the board, employees and the market. “That will be the defining role of his job and that should be his focus,” suggests Sanchit Vir Gogia, chief analyst, founder and CEO of Greyhound Research. That is the first of the ‘mool’ mantras that Parekh will have to chant.

He says that unless Parekh gets this one right, the others like ensuring market performance by aiming for growth or building future leadership to ensure stability won’t fall in place. “The crux for Parekh is to manage stakeholders sentiment and that has to be done overnight,” says Gogia.

Advantage, Parekh

Another advantage seen for Parekh is that he won’t be operating from the US like Sikka, another grouse against the latter’s style of functioning. “Unlike Sikka, Parekh has a pulse on the Indian IT services context. He is definitely a kingmaker, for sure. He was pivotal in making Capgemini what it is today,” said Gogia

Transformation challenge

Parekh will have to morph Infosys’ culture gradually. “The new CEO will have to gradually take the company away from traditional services and make it more professional,” says Gogia. Many sector specialists say that itself is going to be a major hurdle for Parekh.

The Murthy factor

Gogia says that Parekh has come on board with Nandan as its non-executive chief. “Parekh will have Nandan to take care of that,” says Gogia.

[Source]

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Analyst:

Sanchit Vir Gogia: Sanchit is the Chief Analyst, Founder & CEO of Greyhound Research, a Global, Award-Winning, Technology & Innovation Research, Advisory & Consulting Firm. To read more about him, click here.


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