PRESENTED BY:

MAYANK AGRAWAL
 INTRODUCTION
• Infosys was founded by N.R. Narayan Murthy
in 1981.

• It is a New York Stock Exchange (NYSE) tested

global consulting company and IT Service Company.
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• It has more than 210000 employees.

• Revenue of about 59,289 crores (as of 2017).

• The first IT Company from India to become part of NASDAQ

(National Association of Securities Dealers Automated Quotations).
 MILESTONES ACHIEVED

• Infosys completed 25 years of listing

on Indian Stock exchanges.

• Infosys signed the “Advance Pricing

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Agreement” with the US IRS to
enhance predictability of the
Company’s tax obligations in
respect of its US operations.

• Infosys completed its equity share buy back program of ₹ 13,000

crore, amounting to 4.92% of total outstanding equity shares.
• Infosys Board appointed Salil Parekh as CEO and MD of the company
effective January 2, 2018

• Infosys Board appointed Nandan Nilekani as

Non- Executive Chairman of the Board.
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• Pravin Rao appointed as Interim
Chief Executive Officer and Managing Director.

• Board revised the capital allocation policy

and decided to payout up to 70% of the
free cash flow (net cash provided by
operating activities less capital expenditure
as per the consolidated statement of cash flows prepared under IFRS)
as dividend.
MILESTONES ACHIEVED

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 COMPANY PROFILE
• CEO - Salil Parekh

• Founded by: N. R. Narayana Murthy

and six engineers in Pune, India.

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• Infosys is expanding global
existence with 209,000+ employees.

• Infosys has 123 development centers

and 82 sales and marketing offices.

• Serves in 45 countries while helping their customers for digital

transformation.
• Infosys provides business information technology services
including, independent validation, application consulting and
systems integration services, development and maintenance,
engineering services, infrastructure management.

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• Infosys works in following segments - Energy & Utilities,
Manufacturing and Hi-tech (MFG & Hi-Tech),
Retail, Consumer packaged goods and Logistics (RCL), Financial
Services and Insurance (FSI), and Life Sciences and Healthcare
(LSH), Communication and Services (ECS).
• Infosys infuses Artificial Intelligence
– powered core that helps rank
the execution of change, into its
operations.

• Infosys provides a framework to

their clients across areas – Insight, da
Assure, Innovate, Accelerate,
and Experience.

• Infosys Foundation – provides assistance

to socially and economically depressed
sectors of the society which the company is part of.

• Ethics and Honesty – the main focus for interactions with – clients,
partners, and employees.
 THE PROBLEM
RIFT BETWEEN

Founder CEO SHAREHOLDERS

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PERSONALITY DIFFERENCE

NON-ALIGNMENT OF GROWTH PLANS

LOW CONFIDENCE

AGGRESSIVE ATTITUDE
REASON FOR CRISIS

ACQUISTION
• SKAVA
• PANAYA

• MANAGEMENT
ALIGNMENT
ISSUE • SENIOR
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• BOARD
LACK OF
CONFIDENCE MEMBERS
• SHAREHOLDERS

SALARY GAP
• CEO
• CFO
What happened
as a result
of this conflict?
• Vishal Sikka resigned as MD and CEO of INFOSYS, stating ‘continuous
distractions’ as his reason on August 18, 2017.

• He later quit the organization in the same week on August 24, 2017.
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• His method of being fast paced and long-term visionary through AI did
not match with the already existing board members and shareholders of
Infosys. He was critically judged for being a CTO and not a CEO.

• After Vishal Sikka’s resignation, the Infosys stock reached a three year
low and slid as much as 13% before eventually settling at Rs 923.10 on
the BSE, in 2017.
• Infosys lost a market of more than Rs 22,000 crore market
capitalization.

• With the end of the 2017-2018 financial year, Infosys made efforts to
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erase a part of its stinging past. (Mandavia, 2017) Infosys announced the
sale of its three acquisitions made under the leadership of Vishal
Sikka, i.e., Kallidus, Skava, and Panaya companies.

• E-commerce service provider Kallidus, cloud-based platform Skava and

enterprise software management firm Panaya that were the key players
to lead Infosys into the era of new age technology were cut off because
of trust issues and thereby the organization had to make a decision
under the consistent board members intervening and pressure.
 WHAT CAN WE LEARN FROM THIS CASE?
• Be dynamic

• Be ready to justify your actions

• Experience vs knowledge
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• Create a positive work
environment

• Goals of the company should align

• Uniformity in salaries

• Take preventive rather than corrective measures