Infosys chief quits in rift with founders

Vishal Sikka has resigned as chief executive of Infosys, the Indian software giant announced Friday, amid growing acrimony between the company's board and its founders.

Sikka said the "increasingly personal" attacks had hit morale at the company, which has been trying to keep pace with rapid changes in the industry.

"Over the last many months and quarters, we have all been besieged by false, baseless, malicious and increasingly personal attacks," he said in a statement.

"The distractions that we have seen, the constant drumbeat of the same issues over and over again, while ignoring and undermining the good work that has been done, take the excitement and passion out of this amazing journey."

Shares in the company fell by more than seven percent after the surprise announcement.

Sikka had come under fire in recent months from some of the founders of the company on issues related to corporate governance and salary increases for its top executives. 

On Friday he said he would stay on temporarily as executive vice chairman to ensure a "smooth transition". Infosys veteran UB Pravin Rao, currently chief operating officer, will take over as interim chief executive.

Analysts said Sikka had helped steer Infosys back on track and his resignation reflected badly on the company.

"Sikka's letter indicates there was a directed attack on him leading to his resignation, which again makes the company look bad for investors," IT analyst Baburajan Kizhakedath told AFP.

"It is a tough time for Infosys in the market and the board couldn't handle investors, media or its own warring factions," he added.

Another analyst said the sudden move could make it difficult for Infosys to recruit a permanent successor to the role.

Sikka was the first Infosys chief executive who wasn’t one of the company's founders.

He is based in the United States, where the company earns nearly two-thirds of its revenue.

India became a back office to the world in the early 2000s as companies subcontracted work to firms such as Infosys, taking advantage of the country's skilled English-speaking workforce.

The $150-billion IT sector remains one of the country's flagship industries, but it is facing upheaval in the face of automation and US President Donald Trump's clampdown on visas.

Industry body Nasscom recently called on companies to teach employees new skills after claims they had failed to keep up with new technologies.

Last month Infosys reported an increase of 1.4 percent in consolidated net profit year-on-year for the first quarter, marginally beating analysts' expectations.

The company's board said it understood Sikka's reasons for resigning and regretted his decision.

It said criticism of the management team had "harmed employee morale and contributed to the loss of the company's valued CEO".

Shares in the company fell by 7.11 percent on the Mumbai stock exchange after the announcement to 948.25 rupees ($14.7).

Source: AFP