Infosys appoints outsider Salil Parekh as MD, CEO

Published On: 03, Dec 2017 | Source: financialexpress.com

India’s number 2 IT services company Infosys on Saturday announced the appointment of Salil S Parekh as its new CEO and Managing  Director, making him the second outsider to take up the top job at the IT major. A member of the group executive board at consultancy firm Capgemini, Parekh will take over from January 2 next year with a five-year term, and will face the twin challenges of reviving growth and making peace between the company’s founders and Board. The company had been searching for a new CEO after Vishal Sikka’s exit in August this year after a tumultuous threeyear period. Sikka, who joined from German software maker SAPSE in 2014, was the first outsider CEO of the company.

His exitled to are shuffling of the Infosys’ Board, with co-founder and former CEO Nandan Nilekani returning as non-executive chairman. Nilekani had said at the time that a cultural fit would be an important criterion for the top job, making internal candidates “very strong contenders”. Commenting on the appointment, Infosys chairman Nandan Nilekani said Saturday, “We are delighted to have Salil joining as the CEO & MD of Infosys. He has nearly three decades of global experience in the ITservices industry. He has a strong track record of executing business turnarounds and managing very successful acquisitions. The Board believes that he is the right person to lead Infosys at this transformative time in our industry.

The Board is also grateful to Pravin for his leadership during this period of transition.” Pravin Rao,whowas designated as the interim CEO, goes back to his original role as the chief operating officer and member of the Board. Kiran Mazumdar-Shaw, chairperson of the nomination & remuneration committee of Infosys, stated, “After a comprehensive global search effort, we are pleased to appoint Salilas the CEO & MD.

He was the top choice from a pool of highly qualified candidates.With his strong track record and extensive experience, we believewe have the right person to lead Infosys.” Sources said the Board was very clear that they wanted somebody who will be based in Bengaluru, the headquarters of Infosys, and there was much speculation of former Infosys Board members Ashok Vemuri and BG Srinivas being in the race forthe job. Parekh has been with Capgemini since 2000, serving in various roles both within India and in geographies such as North America and Europe. Capgemini Group chairman Paul Hermelin said on the development,“ I would like to thank Salil for his involvement in the Capgemini journey.

Salil contributed in particular to the development of the group in India and in the US.” has been as head of its cloud infrastructure services andAsia-Pacific, North America and United Kingdom. Commenting on the appointment, Sanjoy Sen of Aston Business School, UK, said, “The appointment of Salil Parekh is likely to be viewed positively in Infosys’ journey to rebuild its business positioning. It would also be seen by stakeholders as Nandan Nilekani’s ability to align rhetoric with reality by delivering to his promise amid speculation that Infosys may not be able to find the right candidate form any months.