India's Infosys shares up after new chief named

Jun 12, 2014

Shares in Indian outsourcing giant Infosys climbed nearly four percent on Thursday after the company announced a new chief executive who will take over in August.

Infosys, which is based in the southern high-tech city of Bangalore, rose as much as 3.77 percent to 3,298.00 rupees on the Bombay Stock Exchange after the firm said Vishal Sikka, previously with German software giant SAP, would take the helm.

The also said N.R. Narayana Murthy, the co-founder who returned as executive chairman in June last year, would step down from his current role on Saturday.

With the announcement the IT giant seems keen on ending the string of high-profile departures since Murthy returned to the company.

The last big name to quit was president B.G. Srinivas, who was thought to be a frontrunner for the chief executive post before he left the company last month. The Economic Times said he was the 12th senior figure to leave since Murthy returned.

Sikka's appointment means that S.D. Shibulal, the current chief of Infosys, will retire nearly four months earlier than expected.

"I am honored to lead Infosys, an iconic company built by pioneers in the technology industry," Sikka said in a press release from Infosys.

Infosys—created three decades ago by Murthy and six others around a kitchen table—has been losing market share to rivals such as Tata Consultancy Services and HCL.

But in April, the Nasdaq-listed firm announced that its consolidated net profit had surged 25 percent in the January to March quarter, beating market estimates.

Last October, Infosys said it would pay $34 million to the US government to settle an investigation into alleged visa fraud by the company.

Many of India's IT outsourcing firms have reported subdued growth in recent years due to the .

Explore further: India's Infosys drops seven percent as top exec quits

add to favorites email to friend print save as pdf

Related Stories

India's Infosys sees weaker sales, shares tank

Mar 13, 2014

Shares of Indian outsourcing giant Infosys slid almost nine percent Thursday after the firm warned that quarterly revenues may be weaker-than-expected following project cancellations.

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.

Infosys profits up slightly despite currency woes

Jul 12, 2013

Indian software outsourcing giant Infosys posted slightly higher quarterly profit Friday and maintained its revenue growth forecast despite the weak rupee and uncertainty about U.S. visas for its employees.

Recommended for you

Alibaba's plan: Today, China. Tomorrow, the world.

6 hours ago

Amazon and eBay should watch their backs. As Chinese e-commerce powerhouse Alibaba readies what could be the biggest initial public offering ever on the New York Stock Exchange, it is quietly hinting at plans ...

News Corp opposes Google in EU antitrust case

9 hours ago

The media conglomerate controlled by Rupert Murdoch is joining the fray in Google's protracted European antitrust case, saying the technology company unfairly distorts competition.

Apple iPhone lacks 'key' licence in China

11 hours ago

Apple's iPhone 6 still lacks a key network access licence in China, state media confirmed Thursday on the eve of its global launch, breaking official silence on why sales of the smartphone will be delayed.

User comments : 0