NRN For INFOSYS or INFOSYS For NRN?

I was wondering the impact of Mr. NR Narayan Murthy's (NRN) return to Infosys’s executive fold. Definitely it would be a morale booster for the Infosys employees, especially the old timers. But the question remains - Would he be able to transform Infosys back to the stature of the Golden Era it once belonged to? How soon would he be able to do it?

Every employee would be looking forward for a positive change and expect that it would take their company out of the turmoil the organization is in. They would be expecting that NRN is actively involved in the functioning of Infosys. There would be an initial peak that would drive the positive vibration across the organization. It has to be seen how effectively Infosys's Management would be able to maintain this peak and do not allow it to dip (which could be highly detrimental).

Senior to mid-senior management would be in a state of insecurity. People in the driving or navigation seats are the once who are jointly responsible for Infosys current state. They would be worried what NRN has in store for them.

Infy 3.0 story has not been a success and Infosys the erstwhile leader has turned into a laggard having already lost the no. 2 spot. People management is in most pathetic state. Bench strength and attrition is at all time high. Employees are highly dissatisfied and frustrated; High level of negative energy is flowing through the system. 

Would NRN be able to transform these and other critical issues affecting the Infosys Ecosystem in a short span? I do not believe so. He does not come with a magic wand. He will take time to analyze and prioritize his actions as problems with Infosys are multifold. If changing the employee perception is not on his highest priority he would not be able to plug the dip and the drain Infosys is going through. A major restructuring is required to elevate Infosys to a level where it would again be considered as an industry leader, a trend setter. All of this would take time. Competition is highly aggressive and different from what it was in the years gone by. Thus, the challenges for NRN’s team are going to be mountainous.

Stock market reacted positively to the news of NRN's comeback but this news would not be sufficient enough to maintain or further drive-up the stock value of Infosys. 

I pray the best for Infosys as it has not only been a leader of Indian IT services industry but has been a dream company for any individual from my generation. Unfortunately today I do not see any of those pillars that made Infosys a dream company standing. I wish that NRN would be able to bring that glitter back again.

My Opinion – Its Infosys For NRN

We all got the news that NRN and his son Rohan would work for Infosys at a salary of INR 1 per year. Amazing it seems at the first instance; people say ‘wow what a love the company that he founded that he is working for that meager salary’

On the other hand father and son duo earns a highly significant amount from the dividends of Infosys, an amount that is completely tax free. In 2012 NRN earned INR 9.89 Cr while Rohan INR 33 Cr as dividend from Infosys (source – Economic Times).  They would be easily able to make-up any potential losses due to single digit salary.

To me it seems more of the dynastic ideology, whereby Rohan can be implanted as a future successor in Infosys. There is definitely nothing wrong with it. But it is against the policies that NRN himself was part of while the policies were put in place. The policy whereby there were limitations on the age and family members of Infosys founders has been changed to bring in NRN and his team. With that has been put to rest some of the key reasons that had always put Infosys in a different club for governance.

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