Short-term setback for Infosys, say analysts after CEO Vishal Sikka's exit

With Infosys’ first non-founder CEO Vishal Sikka calling it quits, IT analysts believe that his resignation will be a near term dampener, however going forward the stock will overcome the setback and
Vishal Sikka. (PTI File Photo)
Vishal Sikka. (PTI File Photo)

CHENNAI/BENGALURU: With Infosys’ first non-founder CEO Vishal Sikka calling it quits, IT analysts believe that his resignation will be a near term dampener, however going forward the stock will overcome the setback and help in reshaping the IT behemoth.

“In near term it’s a setback for Infy; but given the strength of the board of the company, we believe that the company will be overcome the setback,” said Sarabjit Kour Nangra, V-P research, Angel Broking.
Mahesh Singhi, founder & MD, Singhi Advisors said, “the move is a succession plan for him post the company transformation since he took over”, adding that it is a direct move at the time when the company is battling against time to put Infosys back on the growth pedestal.

Acknowledging that the company did better than the IT industry during his three year tenure, V K Sharma, Head of PCG, HDFC securities said Sikka’s exit draws a ‘long drawn out boardroom battle to a close’. Stating that Sikka’s claims of continuous distraction did not hold water, he said “Sikka had a long enough honeymoon period to make his mark,” he said.

Subramanyam S, CEO of Ascent HR, said that the change was not a surprise. “While the general trends of growth with IT services (was) being hit hard owing to protectionist measures, Infosys did seem to be faring well over the last three years despite the differences that the stakeholders and management had,” he said. Such decisions indicate that the company is starting another reshaping of its top personnel, he said.
According to IiAS, Nandan Nilekani may be the best candidate Infosys can find globally.

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