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Murthy and his son
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Murthy and his sonNarayana Murthy, the founder of Infosys , who was recently brought back to the company board as executive chairman today said that it will take him at least three years to rebuild the ‘desirable’ Infosys .
Outlining his future strategy for the company, at the 32nd annual general meeting (AGM) in Bangalore, Murthy said the company would re-focus on wining large projects and would strengthen its focus on consulting solutions and intellectual property based solutions.
He also recognised the need to boost employee morale which must have been affected due to continuous under performance of the company over past two years. Murthy said that the company will improve employee confidence via compensation. On Friday the India’ second largest software exporters announced an average eight percent hike in salaries of Indian employees and 3 percent hike for global employees.
Infosys, which had been underperforming its peers like Tata Consultancy Services ( TCS ) and missing its revenue guidance for almost a year now, had to bring back mentor Murthy after its restructuring strategy well-known as Infosys 3.0 strategy failed to garner desired result. The country's second largest IT services exporter missed its annual guidance for the second consecutive year, and registered decline in overall revenue growth and also gave a muted guidance for 2013-14.
While addressing shareholders, Murthy recognised the need to cut wasteful expenses and optimising cost. He also indicated that the company would adopting flexible pricing policy for contracts whenever needed.
Explaining the under performance of the company over past year, Managing Director SD Shibulal said FY13 was a year of internal turbulence for the company as it had to execute strategic transformation. In the company’s defense, he added that despite several challenges Infosys has sustained growth momentum.
Just days after appointment of Murthy, Institutional Investor Advisory Services (IIAS), an investor advisory firm, raised the red flag against the move and said that IT giant had compromised on the very principles of corporate governance it so strongly advocated during its rise to the top.
Murthy, 66, retired from Infosys in 2011 and returned on June 1. On his return he made special request to the Board to appoint his son Rohan Murthy as his executive assistant. Rohan will take a sabbatical from Harvard University in the US where he is a junior fellow in the Society of Fellows to assist his father in the company's chairman's office.
Now it remains to be seen whether Murthy’s return is able to change fortunes of beleaguering Infosys. Infosys has guided for revenue growth of 6-10 per cent for fiscal 2014, as against Nasscom’s 12-14 percent growth forecast.
