Published: Mon, December 04, 2017
Finance | By Kristine Clayton

Infosys appoints Salil S. Parekh as CEO and MD

Infosys appoints Salil S. Parekh as CEO and MD

Salil Parekh, the new CEO of Infosys, is no stranger to the the world of IT services, and not even to the process of a CEO search at Infosys.

The CEO designate had been previously associated with the French IT services firm Capgemini for 25 years and was till recently a member of the Group Executive Board. His exit and the prolonged public spat led to a reshuffling of the Infosys' board with Nandan Nilekani, a co-founder and former CEO, returning as non-executive chairman.

Yet, Infosys has also somehow played it safe by anointing Parekh, who unlike Sikka, comes armed with plenty of experience of negotiating multi-million dollar outsourcing deals, which are staple for Infosys and its peers such as TCS, Wipro and US-based Cognizant Technology Solutions.

Parekh holds Masters degree in Computer Science and Mechanical Engineering from Cornell University in NY. The Board believes that Parekh is the right person to lead Infosys at this "transformative time in the industry", he added.

According to reports, UB Pravin Rao, CFO Ranganath D Mavinakere as well as Ashok Vemuri (former Americas Head and Board member at Infosys) and B G Srinivas (former Infosys President) were considered for the top job. With over 30 years of global experience in the IT services industry, Parekh's strong track record of executing business turnarounds and managing successful acquisitions has always been a talking point among his peers.

Salil joined Capgemini in 2000 as a result of the acquisition of the consulting division of Ernst and Young and occupied various leadership positions in the Group. "His departure will be effective on January 1st", Capgemini said on Saturday. Parekh will assume office from January 2, 2018 for a period of 5 years, a statement filed by the company to stock exchanges mentioned. In fact, he was one of Capgemini's five deputy CEOs, and was responsible for a number of businesses that reportedly accounted for 45 percent of the company's revenue.

This will fill in new energy in the team and the company.

The appointment is made based on the recommendation of the Nomination and Remuneration Committee which concluded its global search for a CEO and MD, the company statement mentioned.

"So Infosys appears to have played it safe as the company a bad experience of earlier appointing an American CEO based out of United States", said Shriram Subramanian, founder and managing director of proxy firm InGovern Research.

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