Why Is Infosys Going For A Lean Board?
The country’s second largest IT service company, Infosys is undergoing a massive structural change under the leadership of CEO Vishal Sikka, since he took over in June last year. And, now the company is taking a bold move to have a lean board with only two executive directors for ensuring faster decision making.
Experts believe, this is part of the larger company strategy that emphasis on the Infosys’ endeavour to regain the growth momentum. Infosys currently has a 10-member board, with seven independent directors and only two members, CEO Vishal Sikka and COO Pravin Rao. It has K V Kamath as the non-executive chairman.
The company has also promoted its CFO to the board that made V Balakrishnan and TV Mohandas Pai its members. However, according to latest sources, there are no such plans at present to include the present CFO Rajiv Bansal on the board.
In a recent interview with ET, Infosys chief Sikka mentioned, “We’ve a great board, a distinguished one. It’s not my call. It is a very collaborative atmosphere and I absolutely love that.”
According to Partha Iyengar, head of research at Gartner India, “After a massive leadership churn that saw many quit the company over the past two years, Infosys has finally managed a balance between strategy, vision and execution, and operations,” and adds that “Sikka has been putting all the building blocks, and making the right noises too.”
One thing is clear that Infosys is developing and identifying a fresh pool of leaders. According to sources, Infosys has already started identifying its pool of next generation managers from within by triggering an exercise to pick 40 leaders each in two batches. “These 80 leaders will form the leadership pipeline,” said a person familiar with the company’s developments to the leading news site.
Moreover, Sikka said the company had now set a target to have 25 percent women in senior leadership roles by 2020. The company’s newly formed Global Diversity Council will look to ensure the target is met.
While Infosys is going for a lean board, sources reveal that Wipro, the third largest IT service company, is also having similar plans, as the current CFO Suresh Senapaty is retiring this April.
The lean board will ensure that decisions are focused and made faster, believe experts in the industry, as both the IT services majors are endeavouring and strategizing to regain their growth momentum and remain at a competitive edge.
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