Vishal Sikka’s challenges at Infosys
Vishal Sikka might focus on Infosys' revenue growth and introduce cloud ready technology as well
Mumbai: Vishal Sikka has been appointed as the new CEO of Infosys. Narayana Murthy will step down from this post on June 14, 2014.As per official reports, Vishal Sikka is a well- known figure among the Silicon Valley elite and was the closest to Hasso Plattner, founder of SAP.
Getting a higher post in Infosys also welcomes a lot of responsibility at the same time. As Infosys has faced uncertainty previously in its revenue growth, the company now expects Vishal Sikka to recover losses.
In order to recover Infosys’ losses, the key areas that Vishal Sikka might focus on, are as follows:
Improvisation of work environment:
As per official reports, Infosys employs around 1.5 lakh employees. But in spite ofa huge work force, the company faced uncertainty. Later, Attrition at Infosys rose to 18.7 per cent in the March quarter from 16.3 per cent in the December quarter.
In the course of time, Infosys has even lost 11 senior management employees. Taking into consideration the employee morale, Vishal Sikka might be expected to introduce more schemes for employees, better employee engagement towards Infosys’ profits in future.
Need to improve revenue growth:
According to its official reports, Infosys margins grew up by 200 basis points, as it started winning large outsourcing deals. But, the revenue growth of Infosys still lags behind. Infosys expects to grow at 9 per cent in this fiscal year.
In 2013, Narayana Murthy had outlined his three-year strategy of turning Infosys into ‘the most desirable company’ but unfortunately couldn’t fulfil the all around targets of the company. As Vishal Sikka is a well known name in SAP, he might nail it down by using his contacts for Infosys’ advantage.
Vishal Sikka will need to invest smartly for Infosys’ 'cloud ready' technology
Even though Vishal Sikka led all products business at SAP, Infosys can be a challenge for him as it is predominantly a services company. In an investor conference, Vishal Sikka claimed that that the distinction between products and services has become blurred. ‘Large machines are delivered as services nowadays.To me, the distinction between software-led services and product is not that much,’ he said.
Investing smartly and bringing in new innovative tedchnology to an IT development company might increase the expectation for Infosys’ success in future.