1. Return of Murthy or return of Martinet
Infosys Limited (Infosys) – along with its majority owned and controlled subsidiaries – is a leading global
consulting and IT services firm. The company provides end-to-end business solutions that leverage
technology. The company provides solutions that span the entire software life cycle. In addition, the
company offers software products for the banking industry and business process management services.
N.R. Narayana Murthy is a name associated with Infosys, as its life blood. He started Infosys in 1981 and
served as its CEO from 1981 to 2002 leaving Nandan Nilekani to succeed him. He served as and as
chairman from 2002 to 2011. In 2011, Narayan Murthy retired from Infosys leaving behind the
leadership in the hands of S.D.Shibulal. Infosys had since then been grappling with a string of
disappointing results and loss in market share. IT major Infosys, somewhat dramatically, reappointed co-
founder NR Narayana Murthy as executive chairman two years after he had retired from the company.
His entry was considered to inject elixir into Infosys, which had been struggling with weak revenue
growth, falling market share and sagging employee morale. However, Murthy came in with his own
terms and conditions. To function more effectively, Murthy desired a ‘chairman’s office’ and requested
the company to allow him to create his own team that would assist him during his tenure. Son Rohan
Murthy became a part of that team. Murthy had stated in a press conference in June this year that
Rohan would work only as an executive assistant in the chairman’s office and would not have any
leadership role in the company. Nevertheless, Murthy had bent the rules, instated by him, for the
second time. First when he returned back as the chairman and second when he appointed his son
against the formerly formulated policy as apart of which the family members of the co-founders were
not allowed to join the company even through the normal route. The third slip-up committed by
Murthy was the reports of Rohan murthy, a novice, being considered for the position of vice- President.
If reports are to be believed, it looked as if Infosys would soon designate him as CEO. This news sent a
chilling effect in the pitch of top headship.Shibulal's term ends in 2015 and the company wants to
ensure a smooth succession.Within the company, Ashok Vemuri, global head of manufacturing and
engineering services, BG Srinivas, head of Europe and global financial services, and V Balakrishnan,
member of the board and head of Infosys BPO were seen as possible contenders for the job.
Soon after Murthy’s arrival, began a series of high profile exits at Infosys, in July 11, 2013 T Basab
Pradhan head of global sales and marketing quit the IT major. His departure is attributed to the
overhauling policy initiated by Narayana Murthy. Soon after, in August 2013, Vice president and head of
financial services in Americas, Mr. Sudhir Chaturvedi declines from his position to join NIIT technologies
as COO. As a sequential shudder, comes the third resignation and this time it is Ashok Vemuri, Head of
Americas and global head of manufacturing and engineering services. Vemuri’s exit is quite significant
from the point of view that he had not only spent over 14 years with the company, but also he was
heading the Americas region which accounts for 6o percent of company’s revenue. Industry sources say
that the reason why he has quit could be that he may have realized that probably the road ahead him
was not so clear.
Looking at the market analyst assessment junior Murthy’s elevation to a decision making position,
without spending significant time in the middle managerial level and without proving his mettle would

2. not only raise eyebrows but also may have a negative effect on the confidence of the investors. This
might de-rate the company as well. The draining of the top talents is also in a way draining out the
stability of the company. On the other hand it is hard to question the decision of the board involving
Murthy himself who has given his heart and soul to build and rebuild the good will of the IT giant.