Tech Mahindra has seen the recruitment of twelve former executives from Infosys since March 2023, coinciding with Mohit Joshi’s appointment as CEO. Cognizant has similarly attracted ex-Infosys talent after appointing Ravi Kumar as CEO. This top-level shift raises concerns about Infosys’s ability to maintain stability and growth amidst a challenging market, as it reports its slowest growth rates in several years. The role of non-compete clauses in talent movement remains uncertain, suggesting ongoing challenges for Infosys.
Since March 2023, Tech Mahindra has attracted a dozen former Infosys Ltd executives, coinciding with the appointment of Mohit Joshi as CEO. Of this group, three executives transitioned directly from Infosys, while nine had previously worked at other organizations for at least one year. This leadership shift mirrors a similar trend observed at Cognizant Technology Solutions, which, after appointing Ravi Kumar S. as CEO in January 2023, welcomed several ex-Infosys personnel. In total, ten former Infosys executives joined Cognizant, six coming directly from Infosys and four with previous work experience at various companies. The executive movement from Infosys over the last two years has been associated with the company’s slow growth rate, which was reported as the slowest since CEO Salil Parekh took over in January 2018. For the fiscal year ending March 2024, Infosys’s revenue grew only 1.9% to $18.6 billion. Notably, among those who joined Tech Mahindra are Richard Lobo and Nitesh Aggarwal, taking on critical roles in human resources and strategy. Cognizant’s revenue fell by 0.39% in 2023 to $19.4 billion, and Tech Mahindra experienced a more significant decline, with revenues decreasing 5% to $6.3 billion. Recruitment firms highlight that the considerable attrition at Infosys’s leadership level can largely be attributed to the influence of Joshi and Kumar, who are known for cultivating robust verticals like BFSI and cloud infrastructures during their tenure at Infosys. Infosys appears unconcerned about the leadership changes, emphasizing its strong internal leadership pipeline. Salil Parekh stated, “In terms of leadership, we are indeed fortunate to have a good team and a very strong set of leaders within the company…” Furthermore, the management reassured analysts of their extensive leadership base and the successful internal appointments in recent quarters. Non-compete clauses among top executives have come under scrutiny as former Infosys personnel join competitors. Infosys has previously classified companies such as Tech Mahindra and Cognizant as competitors but has not publicly discussed specific non-compete protocols. The enforceability of such clauses remains debatable, particularly in the context of recruitment in an open market. Ultimately, the migration of senior executives raises concerns about client continuity and operational stability within Infosys. Executives from recruitment firms have expressed that loyalty often lies not with the corporate brand but with specific leaders, making the departure of these talents alarming for Infosys’s future prospects.
The exodus of senior talent from Infosys is part of a notable trend within India’s IT sector, where leadership changes have been prompted by low growth rates in major firms. This trend began as Salil Parekh secured a second term as Infosys’s CEO, leading to the exits of influential leaders such as Mohit Joshi and Ravi Kumar S. Their subsequent appointments at Tech Mahindra and Cognizant, respectively, have catalyzed further transitions of Infosys executives to these firms, raising questions about the company’s strategic stability amidst growing competition.
The movement of top executives from Infosys to Tech Mahindra and Cognizant reflects broader challenges within the IT industry, particularly regarding leadership attrition and company growth. Infosys maintains confidence in its internal leadership capabilities despite these exits, but the implications for client relationships and operational continuity remain a significant concern as the company navigates a tumultuous market landscape.
Original Source: www.livemint.com
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