Infosys – cut off from reality

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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Picture Credits : Infosys, 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 ¬ 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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