Infosys co-founder has 'much to answer for' about CEO's exit

Infosys is Asia’s No.2 software services developer

The bedlam cost the company its current CEO, Vishal Sikka, who said on Friday he would step aside after escalating criticism from the co-founders over his compensation and strategy.

The Infosys board has denied the allegations repeatedly and over the weekend blamed Sikka's resignation on Murthy's "continuous assault", describing the billionaire's latest salvo questioning the integrity of the directors and management as the final nail in the coffin.

The ugly, public spat between Infosys co-founders led by NR Narayana Murthy and the company's board over corporate governance issues that resulted in Vishal Sikka's resignation raises doubts about the company's performance, according to analysts.

".it could hamper longer-term growth if senior management attrition continues. management churn at Infosys would make clients cautious and competitors more aggressive", it said.

State-run oil explorer and marketing company ONGC has replaced Infosys to become the tenth most valuable company on BSE with a market capitalisation of Rs 2,02,187.62 crore, from its closing price of Rs 157.55 per share on the Bombay Stock Exchange (BSE) on Monday.

Sikka was CEO for three years. Sikka has a PhD in Computer Science from Stanford University and joined Infosys as CEO after 12 years with enterprise software-maker SAP.

Sikka was the first non-founder CEO of the Bangalore-based company.

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Since Sikka came to the helm of Infosys on 1 August 2014, shares of the company have jumped more than 20 percent, as of their close on Thursday, outperforming the about 5 percent gain in the Nifty IT index.

Sikka set an ambitious 2020 revenue target of US$20 billion, which he has since acknowledged will be hard to achieve in light of the headwinds now facing the sector.

Infosys, which counts Apple, Volkswagen and Wal-Mart Stores Inc among its customers, has under-performed the Nifty IT index this year amid public attacks from its founders and the U.S. challenges.

Infosys and its larger rival, Tata Consultancy Services Ltd, also face a USA administration that's cracking down on the work visas the companies need to serve key American clients.

"Sikka was trying to change the way we do business".

In November, Cyrus Mistry, the then top boss of Tata Group, India's biggest conglomerate with businesses ranging from cars to steel mills and salt pans, was unceremoniously ousted in a boardroom coup over differences between him and the Tata family patriarch. The board accepted his resignation, effective immediately. In April Infosys said it would return up to 130 billion rupees to shareholders in the financial year ending March 2018.

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