There has been a lot of talk about uneasy stability in US and European market, Indian IT is still growing. It is also almost certain that everyone must gear up for a change to sustain their businesses. However, Infosys story seems to be a bit different. With the new leadership, the decisions seem to be always in contradiction with market reality.
Infosys seems not to understand that there is nothing like premium prices in commodity IT market which everyone is looking at for growth. The brand of Infosys is now similar to Sony or Kodak which had a premium once due to their first mover advantage, but no more. The market feedback from their field force seems to be falling deaf ears with the new management team, engrossed in their own world while Rome is burning.
“It would be prudent to look at dividing the company into more manageable units or different companies …”
The mail from their HR to the employees was very vague on the question of wage hike freeze. It appears that they did not do their homework well and just left the confusion to become turmoil. “Employees will understand” in such a sensitive matter is a clear sign of lack of depth of the management understanding of ground reality. This thereafter led the CEO to write another clarification mail to Infosys employees explaining the situation. This however has come very late and very little. The bitterness in their employees would lead to higher attrition of their good staff and productivity loss and would further erode the company brand value.
Infosys seems to be losing out heavily on all the new business opportunities coming which is being lapped by companies like Cognizant. The trend is certainly a big indicator that it might be late for Infosys to catch up this losing streak. This comes with another clear indication that field staff are feeling down and out while the support they need from management is not coming.
After all this it comes out clear that Infosys management is unable to manage a company of this size and aura. It would be prudent to look at dividing the company into more manageable units or different companies and let the entrepreneurs grow in the organization.
Let us see if Infosys can remain what Infosys has been all these years.
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