India's Infosys recalls founder as woes mount

Jun 01, 2013

Infosys on Saturday reappointed co-founder N.R. Narayana Murthy to lead the Indian outsourcing giant two years after he retired, as the company grapples with weak earnings and falling market share.

The global group said in a statement that incumbent K.V. Kamath will step down as of the board and be an independent director.

"This calling was sudden, unexpected, and most unusual," Murthy, who has been named executive chairman, said in a statement.

"But, then, Infosys is my middle child. Therefore, I have put aside my plans-in-progress and accepted this responsibility," the Infosys co-founder said.

The move comes after the company, India's second-largest software by revenue, in April announced disappointing fourth-quarter earnings and weak revenue projections.

Infosys, which is also listed on New York's Nasdaq, has been seeking to turn itself around with a strategic overhaul to focus on higher value software and consulting services instead of labour-intensive outsourcing services.

Three decades ago, Murthy and six other pioneers sat around a kitchen table and formed Infosys.

Murthy's son, Rohan Murthy, who holds a Harvard computer science doctorate, will serve as his executive assistant, the statement said.

The appointments will be submitted to shareholders for approval at the company's annual general meeting on June 15, said.

Murthy retired as executive chairman in August 2011 after turning 65 and Kamath assumed the post as non-executive chairman with co-founder Krish Gopalakrishnan as co-chairman.

Murthy was named chairman emeritus on his retirement.

S. Gopalakrishnan will be re-appointed executive vice-chairman and will focus on client relationships and industry issues.

The decision to bring Murthy back into active service was taken by the board at a meeting on Saturday.

Kamath welcomed Murthy's reappointment saying that his entrepreneurial and leadership record as well as his long experience he has had as a technology pioneer "makes him eminently qualified to lead the company and provide strategic direction at this point in time".

Kamath, former chief executive of India's top private bank ICICI, said the board had taken the step "keeping in mind the challenges that the technology industry" faces.

Explore further: IBM posts lower 1Q earnings amid hardware slump

add to favorites email to friend print save as pdf

Related Stories

India's Infosys names banker as new chairman

Apr 30, 2011

Infosys on Saturday named a prominent banker to take charge of India's second-largest software exporter as the firm struggles to boost performance in the face of slow global recovery.

India's Infosys profit up 27% but shares tumble

Apr 13, 2012

Indian software exporter Infosys on Friday said its quarterly profit rose 27 percent, but disappointed the markets with a lower-than-expected growth forecast that saw its shares plunge.

India's Infosys pays $350 mn for Swiss consultancy

Sep 10, 2012

Indian IT outsourcing giant Infosys said Monday it had agreed to buy Zurich-based consulting firm Lodestone for $350 million as part of its strategy to move into higher value services.

Recommended for you

IBM posts lower 1Q earnings amid hardware slump

7 hours ago

IBM's first-quarter earnings fell and revenue came in below Wall Street's expectations amid an ongoing decline in its hardware business, one that was exasperated by weaker demand in China and emerging markets.

New US-Spanish firm says targets rich mobile ad market

13 hours ago

Spanish telecoms firm Telefonica and US investment giant Blackstone launched a mobile telephone advertising venture on Wednesday, challenging internet giants such as Google and Facebook in a multi-billion-dollar ...

Technip, Heerema win third giant Angolan oil contract

16 hours ago

The ultra-deep Angolan offshore oil project called Kaombo generated the third huge contract in three days on Wednesday when French group Total picked two firms to carry out underwater engineering worth $3.5 billion.

User comments : 0

More news stories

Microsoft CEO is driving data-culture mindset

(Phys.org) —Microsoft's future strategy: is all about leveraging data, from different sources, coming together using one cohesive Microsoft architecture. Microsoft CEO Satya Nadella on Tuesday, both in ...

Floating nuclear plants could ride out tsunamis

When an earthquake and tsunami struck the Fukushima Daiichi nuclear plant complex in 2011, neither the quake nor the inundation caused the ensuing contamination. Rather, it was the aftereffects—specifically, ...

Patent talk: Google sharpens contact lens vision

(Phys.org) —A report from Patent Bolt brings us one step closer to what Google may have in mind in developing smart contact lenses. According to the discussion Google is interested in the concept of contact ...

Quantenna promises 10-gigabit Wi-Fi by next year

(Phys.org) —Quantenna Communications has announced that it has plans for releasing a chipset that will be capable of delivering 10Gbps WiFi to/from routers, bridges and computers by sometime next year. ...