India's Infosys recalls founder as woes mount

June 1, 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: India's Infosys Q4 profit up, but below forecasts

Related Stories

India's Infosys Q4 profit up, but below forecasts

April 15, 2011

India's second-biggest outsourcer Infosys said on Friday quarterly net profit jumped nearly 14 percent but the company's shares tumbled as the figures lagged market expectations.

India's Infosys names banker as new chairman

April 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

April 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

September 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

Facebook ready to test giant drone for Internet service

July 30, 2015

Facebook says it will begin test flights later this year for a solar-powered drone with a wingspan as big as a Boeing 737, in the next stage of its campaign to deliver Internet connectivity to remote parts of the world.

Power grid forecasting tool reduces costly errors

July 30, 2015

Accurately forecasting future electricity needs is tricky, with sudden weather changes and other variables impacting projections minute by minute. Errors can have grave repercussions, from blackouts to high market costs. ...

0 comments

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.