INSUBCONTINENT EXCLUSIVE:
Salil Parekh didn't get much time to settle in after taking over the helm of Infosys Ltd
Since becoming chief executive officer in January, the 53-year-old has crisscrossed three continents to meet with customers and employees to
get his hands around the challenges facing India's iconic tech-services giant
He talked with 48 clients in his first three months - and he's determined to see every single one face to face in the next two
quarters.He's already making tough decisions
He says Infosys has to sacrifice profit margins now by investing in advanced technology and skills in order to capture the opportunities of
That includes pumping more money into technologies such as the Internet of Things, retraining employees, localizing its workforce in the
United States and building up the sales staff."To build the future Infosys, we have to make those investments now," says Parekh, perched on
a couch in the office he clearly hasn't used much
On his sparse desk are three photos of his family, a laptop and small statue of the elephant-head Ganesha, the god of new beginnings
"If we don't do that now, the real concern is that we won't be relevant to our clients in the future."It's a message that may unsettle
On Monday, Infosys shares tumbled after the IT services giant said it expected operating margins to be 22 percent to 24 percent, lower than
Within MinutesParekh contends Infosys has a rare combination of skills and experience that will benefit the company in the years ahead
It's been working with customers for decades and can use that understanding to help them navigate shifting technology trends, like cloud
computing and artificial intelligence.Infosys now reaps $2.8 billion in revenue from such digital services
But the potential market is $200 billion."We are best positioned to help clients navigate their journey into the future and take them to the
"Our clients are pushing us because they know we have the capabilities."Parekh may also cut some big acquisitions, like he did in his
He has already met with the MA team and asked them to draw up a short list of possible targets that could help buttress its digital
Salil Parekh Delivers In His First Quarter, Net Profit At Rs
3,690 Crore)In his first interview with international media, Parekh was engaging and a bit disarming
He explained he's in the process of signing the lease on a house for his wife and youngest son to join him in Bangalore from Mumbai, even
as he sends another son off to college in the United States "You miss them, you don't stop thinking about them," he says, dressed in a blue
shirt and striped tie, while his jacket is thrown over the back of a chair.Through it all, his focus clearly is on urgent challenges at
Parekh is trying to get the company back to stable footing after the tumultuous tenure of his predecessor
Vishal Sikka arrived in 2014 as a well-respected executive from SAP, but quit in August after a clash with the company's founders over
strategy and compensation.Parekh was a surprise choice as the new CEO
He was plucked from Capgemini over a field of internal candidates and former executives
He joined Capgemini in 2000 as part of an acquisition and then built its India business to the point it competed with Infosys and rival Tata
Consultancy Services.Parekh jokes about his management style -- "What are my options I'll pick one" -- but he quickly makes clear what he
believes in is data."That's the basis of all my decisions," he says, explaining he spends so much time talking to staff and customers
because he doesn't like "second-hand" information
"I get into the details but I'm not a micro-manager."Infosys and TCS are pioneers in providing back-office support for the world's largest
corporations, but they've had to evolve to go beyond traditional low-margin, labor-intensive work
The country's $167 billion IT services industry is investing in cloud computing and AI to jump-start growth, as clients from banking to
retail turn to automation.Spending on advanced technologies puts pressure on margins
Infosys and its peers are seeing hiring costs rise alongside immigration curbs pushed by the Trump administration in the United States It
also needs to install and train a vast workforce unaccustomed to digital services."Investments in digital capabilities through 2019 will
likely delay margin expansion," said Anurag Rana, an analyst with Bloomberg Intelligence.Parekh says Infosys has to sharpen its recruiting
in the United States to better compete for top-notch employees
The company long depended on bringing in Indian staff on work visas, a practice on which the Trump Administration is cracking down.Infosys
has gotten more serious about hiring in the United States In the fiscal year that ended in March, the company added 3,900 workers in the
country, including 850 college graduates
It's also building a 50-acre training center in Indiana.All that investment won't get growth back to that of the boom years though
On Friday, Infosys forecast a 6 to 8 percent increase in revenue this year, a disappointment to many given the slide in margins.Parekh says
the forecast is simply realistic
He looked at what clients will do, the overall geography and how the business is doing internally -- and can't promise more.For a photo
shoot after the interview, Parekh is back to his most formal
He grabs his jacket, stops to exchange polite greetings with employees en route, and he walks into the verdant garden outside the C-suite
offices."Should I smile" he says, squinting into the bright sunlight
"Oh, OK, no smile.(This story has not been edited by staff and is auto-generated from a syndicated feed.)
