Major challenges before new Infosys CEO Salil S Parekh

Published On: 02, Dec 2017 | Source:

Infosys, India’s No.2 IT services company, said on Saturday it had named Salil S Parekh, an executive at consultancy firm Capgemini, as its next chief executive officer and managing director. Parekh has been appointed for a five-year term effective Jan. 2, according to an Infosys filing to exchanges. Infosys interim CEO Pravin Rao will be re-designated as the chief operating officer of the company from Jan. 2, the statement added.

Major challenges before Salil S Parekh are as follows:

1)Beefing up outsourcing business: The traditional outsourcing business in general faces a margin squeeze and newer ventures have yet to make money. So, the work environment in the IT world is still very challenging. The expected work visa changes (H1B) in the United States, the biggest market for Indian IT firms, has become a headache for the company.

2) Carry forward Sikka’s automation strategy: Parekh needs to carry forward  former CEO Vishal Sikka’s automation strategy with an increased vigor. He needs to push it further to adopt automation and venture into transformational high-margin areas like big data, cloud and analytics. Being an outsider, this will require considerable effort and initiation.

3) Retaining talent: The priority is to retain the talent and slow down attrition at the high-level . Sikka’s departure rattled the rank-and-file and senior level executives critical to rolling out its strategy and retaining clients.

It will be required of Salil S Parekh to ensure the smooth transition of the organization. However, being an outsider, the transition will not be that easy.

Vishal Sikka in August this year resigned from the post of Infosys Managing Director and  Chief Executive Officer.