How Narayana Murthy is trying to revive Infosys1 min read . Updated: 06 Mar 2014, 10:59 PM IST
Since returning to the helm of a company that he founded, Murthy has put together a blueprint to revive Infosys's sagging fortunes
Bangalore: Since returning to the helm of a company that he founded in a small Pune apartment with six others in 1981, Murthy quickly put together a blueprint in place to revive Infosys’s sagging fortunes.
At top-level strategy meetings, Murthy articulated three top priorities:
1. Protecting the top 25-30 customer accounts
2. Aggressively cutting costs, especially onsite costs, and winning large traditional outsourcing contracts
3. Improving sales effectiveness and boosting employee morale
In addition, Murthy reshuffled the entire top deck of the leadership, which resulted in the exits of at least eight top executives, including potential successors to current chief executive S.D. Shibulal, such as Ashok Vemuri and V. Balakrishnan.
Murthy also has actively involved his son Rohan in every top-level meeting within Infosys and made a push towards increasing automation to improve efficiency, putting Rohan in charge of driving that initiative in the process.
Over the past eight months, Murthy has also articulated a timeline for expecting results from different functions:
1. For cost reduction, Murthy says results of the recent cost cutting measures have already started yielding results and will take another 6-18 months to reach optimum levels.
2. For sales effectiveness, Murthy expects improvements in 9-21 months
3. Software delivery effectiveness could take anywhere from 18-36 months to reach optimum levels.
Finally, Murthy disbanded the company’s executive council and adopted a dual-president model that he believes will help succession planning.