Ashok Vemuri named iGate CEO, to join from Monday1 min read . Updated: 12 Sep 2013, 01:06 PM IST
Vemuri, who resigned from Infosys last month, has also been appointed as a member of the iGate board
Bangalore:Ashok Vemuri, who resigned from Infosys Ltd in August after a 15 years in the company, has been named chief executive of Nasdaq-listed software services firm iGate Corp., which recently sacked Phaneesh Murthy for failing to disclose a relationship with a subordinate.
Vemuri, widely seen as a top candidate to replace Infosys co-founder S.D. Shibulal as Infosys CEO after his retirement in 2015, will assume the new role on 16 September. He will also sit on the board.
“Ashok brings a tremendous track record of success and accomplishments working across a range of businesses at Infosys, where he was directly responsible for driving growth for numerous multi-billion dollar businesses," iGate Corp. co-founder Sunil Wadhwani said in a statement. “He is a talented and established leader, and the board has great confidence in his ability to drive iGate to continued growth into the future."
Vemuri joins iGate at a time when the Fremont, California-based company risks losing its biggest customer, Royal Bank of Canada, and is facing a backlash against outsourcing in Canada, one of its biggest markets, where the country’s top banks have temporarily halted handing out fresh IT services projects. The Royal Bank of Canada contributes more than 10% to iGate’s annual revenues.
Vemuri’s appointment ends iGate’s four-month long hunt for a new CEO, after several candidates who were approached by executive search firm Russell Reynolds Associates declined to take up the assignment, citing concerns over the company’s huge $700 million debt, unsettled tax claims and lawsuits filed against it. The candidates spoke to Mint on condition of anonymity as these discussions were private.
At Infosys, Vemuri served as a board member and headed the company’s Americas business, as well as its manufacturing and engineering vertical, overseeing more than $2 billion of annual business from clients.
In May, iGate sacked former CEO Murthy, seen as a top salesman, after he failed to disclose a relationship with a subordinate. Company old-timer Gerhard Watzinger was named as Murthy’s temporary successor.
Watzinger will remain with iGate in an advisory role temporarily to assist with Vemuri’s transition, the company said.