Once a darling of stock markets, Infosys is now battling challenges like pushing growth and retaining talent and these are issues that the newly appointed CEO Vishal Sikka will have to act on fast to rekindle confidence among customers and investors, analysts said.
Greyhound Research CEO Sanchit Vir Gogia feels though the firm is showing signs of recovery, it’s still too early to say if it is in full swing and the new CEO has a lot on his hands.
“Vishal Sikka is stepping in at a time when Infosys is at a crossroads. The company has lost a lot of key people at the senior management. There are signs of recovery but we cannot say that the recovery is in its full swing yet. It’s a tough position to hold and a tough job at hand. Vishal has got lots of ground to cover,” he added.
“But both of these are really more about tomorrow’s world in terms of moving the revenue growth needle – as Infosys found with its prior Tomorrow’s Enterprise– tagged strategy.”
It’s important for Sikka to understand the business, its people and issues revolving around the firm, Gogia said.
“He should essentially better acquaint himself with the business and develop relationships and earn trust before making defining changes,” he added.
Gogia said focus will also be on stepping up the profile for Infosys in US and European markets and improve positioning in innovation and digital.
In the short term, Sikka will need to build internal confidence. Getting a buy in from senior management, addressing investors, areas of improvement, becoming more hand on to the business are key focus areas that he will need to look at, Gogia said.
While in the medium term, Sikka needs to strengthen and build partnerships and alliances particularly in emerging tech and markets, Gogia said.
Attrition is one aspect that requires monitoring, setting of mid managers, investing in people is going to critical in midterm, he added.
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