N R Narayana Murthy, the iconic leader of Indian IT, who co-founded Infosys in the early 80s, is making a comeback to the company after a brief hiatus. Murthy, who had announced his retirement earlier and taken up a non executive role of being the Chairman Emeritus of the company, will now be the executive Chairman of the company.
Murthy’s son Rohan Murthy will join the $7.4 billion company in the Chairman’s office. This will be a first for Infosys which has taken pride in saying that it has kept family members away from taking up roles in the company.
K V Kamath, the Current Chairman of Infosys will stepdown and assume the position of lead independent director from today.
“This calling was sudden, unexpected, and most unusual. But, then, Infosys is my middle child. Therefore, I have put aside my plans-in-progress and accepted this responsibility,” Murthy said.
Murthy will draw a salary of Rs 1 a year and will serve a term of 5 years as the chairman of the board. Kris Gopalakrishnan, who handed over his position as the Chief Executive Officer to S D Shibulal earlier and became co-chairman of Infosys, has been re-designated as the executive Vice Chairman. Shibulal, one of the founders of Infosys, will continue to be the chief executive officer. Both Gopalakrishnan and Shibulal will draw Rs 1 as compensation.
As demand for technology services weakens, Infosys has been struggling to keep up with peers.At the most recent quarter, Infosys saw a sequential growth of .3 % in revenues whereas net profit grew only 1.1% for the quarter ending 31 March 2013. Infosys’ revenue forecast for the full financial year of 2014 at 6% was less than 12-14% projected by Nasscom, the IT industry body. The company is also implementing its Infosys 3.0 strategy which involves a stronger product and platform play.