Asian Tech Icon Flirts With Crisis After Whistle-Blowers Attack CEO

The dust had barely settled at Infosys Ltd. when Asia’s No. 2 software services firm once more found itself grappling with a potential leadership crisis. For the second time in about as many years, the Indian icon synonymous with the country’s technological ascendancy is being forced to answer accusations of impropriety. In the most recent of a stream of grievances aired anonymously over past years, whistle-blowers accused Chief Executive Officer Salil Parekh of instigating employees to inflate profits, mis-represent the lucrativeness of deals, even of abusing travel privileges. In a memo reproduced in local newspapers, Parekh’s accusers offered emails and recordings to back up their claims.

The company is now taking the right steps, auditing the whistle-blowers’ letters and appointing a third-party investigator, said Sanchit Vir Gogia, chief executive officer of Singapore-based Greyhound Research.

“The CEO has a difficult task at hand coming after the sudden exit of his predecessor, managing founder and investor expectations and operating in a difficult business environment,” he said. “The world over, companies take a ton of short cuts to look good in front of investors and analysts.”

“There’s a lot of emotion around everything that happens at Infosys,” Greyhound’s Gogia said. “While I would wait for the investigation before passing a verdict on the anonymous charges, this episode does make things tougher for Infosys.”

[Bloomberg]

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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 firm. To read more about him, click here.

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