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  • What you need to know about the high profile exits from Infosys

    Publish date: 27th August, 2018


    Infosys Chief Financial Officer (CFO) M.D. Ranganath recently announced his decision to quit the company to “pursue professional opportunities in new areas”. This is the latest high profile departure in a long line of exits from the Bangalore based IT giant. Infosys stock price fell by 3.2% last Monday in response to the CFO’s departure.

    Here’s everything you need to know about the story of attrition at Infosys.


    Infosys CFO exits the company

    M.D. Ranganath, or Ranga as he is popularly known, has been a part of Infosys for the past 18 years donning various roles before taking the role of CFO in October 2015. Ranganath’s role in the company was not limited to finance. He was closely involved in working with the Board in formulating and executing various strategic priorities. The exit came as a surprise for many in the industry but the Infosys Board is already looking for a replacement. Reports from various news outlets indicate that Jayesh Sanghrajka, the deputy CFO is a possible candidate for the vacant role.

    Click here to get a snapshot of Infosys Q1 results

    High attrition rates

    A year after former CEO Vishal Sikka departed; the company is still seeing high levels of attrition. Other high level exits include: Sangita Singh (head of Healthcare & Lifesciences), Nitesh Banga (Global head of manufacturing), and Rajesh Krishnamurthy (President and head of Europe division). Overall, there have been 22 key senior management exits from Infosys in the past three years. This has left the leadership bench very unstable. In addition to the top level, the company is also experiencing high attrition rates at all the other levels too.

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    Company leadership requires stability

    This high-profile exodus is not a good sign for the company. The attrition rate for Infosys is much higher compared to its competitors and there are many factors that could have influenced these exits. Reasons include: change in company strategy, perceived underperformance of a few leaders and changes in the CEO position itself. The end result of all these exits is that the company leadership has thinned out significantly. And right now, the company needs stability and augmentation in its leadership ranks.

    Conclusion

    Infosys has taken the right steps to stabilize its business. In the recent past, the company has seen acceleration in deal wins and it has successfully defended its share of business in large accounts. However, with the attrition rate at all levels touching 20%, the company has announced a special $10 million bonus pool for employees according to a report by Economic Times. This is the biggest concern for the company at the moment. As of now, the management plans to keep a close watch on the success of the different measures taken to slow down attrition rates.

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