There was a time when the Infosys’s quarterly results set the tone for the $150 billion Indian IT service sector’s performance. The bellwether’s numbers influenced not just its own shares but even the benchmark IT indices on Indian bourses. But on Oct. 24, when the country’s second-largest IT company posted its financial results for July-September 2017 (Q2), the spotlight wasn’t on its net profit or revenue. Instead, it was mostly on the tussle between founder NR Narayana Murthy and the newly-appointed leadership.
It’s not just Infosys that may end up suffering. The entire industry stands to get a bad name, argued Sanchit Vir Gogia, Chief Analyst, Founder and CEO of Greyhound Research.
“People may not talk about it as often, but no one has forgotten the Satyam issue. It still plays somewhere in the mind of global clients when they look at working with an Indian IT company,” he said. “These issues become case studies and people start generalising it to Indian IT as a whole. The conflict is not just damaging Infosys as a brand but even brand India.”
“This is like going four steps forward and coming two steps back,” Gogia of Greyhound Research said. “No matter how much experience Nilekani has and how good the intentions of the founders are, the fact is that what they did in the last 30 years will not work for Infosys in the next 30 years.”
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Sanchit Vir Gogia: Sanchit is the Chief Analyst, Founder & CEO of Greyhound Research, a Global Technology & Innovation Research, Advisory & Consulting Firm. To read more about him, click here.
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