Infosys trouble – internal problem or indication of bigger issues for Indian IT

indian it companies alok kumar

Newspapers were hitting very hard on Infosys salary hike freeze decision and termed it to be purely an Infosys internal problem and not a reflection of the state of Indian IT industry. Poor Infosys management came under so much media and employee pressure that they are going all out with salary increase decision. CFO even stated that the hike will be single digit hike. What a messy way to handle a simple situation.

TCS and HCL results declared yesterday certainly defied all speculations that anything is wrong with Indian IT. Both the companies posted impressive growth and silenced all critics like me for some time. The question is, for how long?


“The doubt however remains that this gravity defying growth of IT industry in India year on year cannot be a standard phenomenon …”


In reality, Infosys issue is certainly a mirror of the impending larger issues in front of IT companies in India. Some policies of Infosys have certainly hit them hard. Being unrealistic in a market where body shopping of commodity resources cannot be at a premium is being naive enough to ignore all facts. Infosys also kept a distance from Indian customers in India because they considered it not worth the time and money. Companies like TCS and HCL invested very heavily on India opportunities and very obviously, Infosys is now loosing this opportunity as well.

The doubt however remains that this gravity defying growth of IT industry in India year on year cannot be a standard phenomenon. This has to become more reasonable and the changing global scenario has to dump off companies and bodies who do not add value. With more than 50 percent of IT staff in large Indian IT companies are not who adding real value to the customer, this has to get corrected.

Let us wait and see, what Infosys will do and how others will move in to tear off the sheen which Infosys wore all these years.

Have something to add? Share it in the comments.

Picture Credits : Techshout, For representational purposes only

Alok Kumar

Alok Kumar is Managing Partner of SRKay Consulting group, a private equity company, nurturing innovative ventures. Alok also serves on the board of ICCL (Indian Clearing Corporation Limited - A subsidiary of BSE- Bombay Stock Exchange) as an external advisor for technology and information security. Prior to this, Alok had been Managing Director of Sears IT & Management Services India Private Limited (SHI) since its inception in December 2009 and served in the same position till very recently. Having been in senior IT management positions in Fortune 500 companies, Alok has won several national and international awards. Alok is instrumental in planning and setting up SHI and thereafter growing it to a multi-locational thousand-plus people organization. Over the last five years, with his strategic vision, Alok helped SHI grow roots in India, develop and support technology applications and infrastructure across core mainframe, cutting edge e-Commerce and big data technologies. With his unique people-oriented transformational leadership style, Alok turned SHI into one of the most valued investments of Sears, garnering great ROIs, and creating value much beyond cost arbitrage. Under his tutelage, SHI has filed two patents and is recognized widely for its best practices in various areas, the latter, currently featured in Indian Institute of Management (IIM) case studies. SHI also became a CMMI Level 3, PCMM Level 3, and ISO 20000 certified organization. Alok is a widely acclaimed corporate leader in India today. He regularly participates and leads various forums as a keynote speaker and is an author of several books in different genres. Alok has several awards to his credit. He is particularly known in the industry for his people management skills and innovative ideas in improving the productivity of employees through unique people practices. He has been credited with the following industry awards: ¬ Emerging Leader of the Year award 2013 by IndiasGreatest.com ¬ Game Changer CEO of the Year 2013 (SHRM) ¬ CIO 100 - The Bold CIOs - 2008 (Reliance Infosolutions) ¬ CIO - Ones to Watch Award 2008 (Reliance Industries) ¬ Extended Manager Award - CIOL 2004 (Tata Teleservices) As an able leader of SHI, Alok got SHI recognized widely in the industry with the following several awards: ¬ CII Award for HR Best Practices in 2014 ¬ Global Excellence in Outsourcing Award - AIOP (Phoenix 2013) ¬ IT Innovation Award (Design & Engineering) - Computer Society of India 2012 ¬ Golden Company of the Year - Economic Times 2011-12 ¬ 7th Employer Branding Awards - World HRD Congress (Mumbai, India) 2013: • ‘Asia’s Best Employer’ Award • ‘Best HR Strategy’ in line with business • HR Leadership Award • Talent Management Award by Bloomberg TV India ¬ Employer Branding Awards - World HRD Congress (Singapore, Asia) 2013: • 7th rank in ‘Asia’s Best Employer’ award • Award for ‘Best HR Strategy’ in line with the business • HR Leadership Award Other recognitions: Alok had served on the distinguished panel of NASSCOM's GIC (Global In-house Centers) National Council members. The council members play a key role in major initiatives of the industry and include the torch bearers of IT industry as panel members. Books and Papers: Alok is an established author, with three books to his credit. Alok’s third and latest book, a novel, “The Spy from Unaula” is a 2015 publication. A handwriting analysis enthusiast, Alok collaborated with his wife Nandani on the book, “Handwriting Speaks” in 2006. “Value Sourcing – Future of IT Outsourcing” was co-authored with Keith Sherwell (currently CIO, Altice USA) and was released in 2013. Alok also researched and published two whitepapers: a. “Creating next generation captives” talks about the best practices that are helping generate higher value from the IT company captives.

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