Tech Mahindra and Cognizant have recruited numerous former Infosys executives since early 2023, particularly under the leadership of Mohit Joshi and Ravi Kumar S., respectively. This trend coincides with Infosys’s slow revenue growth, leading to concerns about leadership continuity and non-compete enforcement as top talent migrates to rival firms.
Since March 2023, Tech Mahindra Ltd has successfully recruited a dozen former executives from Infosys Ltd, a trend that began when Mohit Joshi, ex-president of Infosys, was named as the CEO designate of Tech Mahindra, officially assuming his role in December 2023. Among the twelve executives, three transitioned directly from Infosys, while the others had previously spent at least a year in various other companies. Similarly, Cognizant Technology Solutions Corp has seen an influx of former Infosys talent as well. In January 2023, when Ravi Kumar S. became CEO of Cognizant, at least ten individuals who had previously held positions at Infosys joined him, including seven directly and three from other firms where they had tenure exceeding ten months. The shifting landscape of senior leadership within Infosys has been evident over the past 24 months, coinciding with the firm’s slowest growth period under the leadership of CEO Salil Parekh, who took office in January 2018. For the fiscal year ending March 2024, Infosys reported a marginal revenue growth of 1.9%, totaling $18.6 billion. Notable exits from Infosys to Tech Mahindra include Richard Lobo and Nitesh Aggarwal, who now serve as Chief People Officer and Chief Strategy Officer, respectively. At Cognizant, significant appointments include Rajesh V. as Chairman and Managing Director for Cognizant India, alongside Ravi Kuchibhotla as Chief Strategy Officer. Despite the talent drain, Infosys management expressed confidence during a post-earnings conference, highlighting their strong leadership team. “In terms of leadership, we are indeed fortunate to have a good team and a very strong set of leaders within the company.” – Salil Parekh. Some analysts and executive search firms attribute the talent migration to the influential track records of Kumar and Joshi within Infosys. Ritu Sethi of ABC Consultants noted that the significant attrition at leadership levels is linked to the capabilities and networks fostered by these former leaders. This loss of talent is particularly notable within the Banking, Financial Services, and Insurance (BFSI) and cloud infrastructure sectors, where Kumar and Joshi excelled during their tenure at Infosys. The implications of this movement raise questions regarding non-compete clauses, as Infosys has identified competitors such as Tech Mahindra and Cognizant but has not publicly clarified the enforcement specifics of these clauses. According to Sethi, enforcement remains a complex issue, suggesting that although all firms possess non-compete agreements, their actual enforceability is questionable. Ultimately, the departures of senior executives not only signify individual career moves but also spark concerns over continuity within client relationships at Infosys, which can impact their market position amidst escalating competition.
The article discusses the recent trend of top executives from Infosys transitioning to competing companies, specifically Tech Mahindra and Cognizant. This trend was catalyzed by the appointments of former Infosys leaders, Mohit Joshi at Tech Mahindra and Ravi Kumar S. at Cognizant, both of whom had significant roles in Infosys before their departures. The article highlights the specific executives involved in this migration, the slow growth reported by Infosys during this leadership upheaval, and the implications for client continuity and competitive dynamics in the IT services sector. Additionally, the article raises issues regarding the enforceability of non-compete clauses in the context of this high-level talent migration.
In conclusion, the movement of senior executives from Infosys to Tech Mahindra and Cognizant illustrates a significant trend in the IT services industry that may undermine Infosys’s competitive standing. As these companies strive to leverage the talents of previous Infosys leaders for their own organizational growth, concerns regarding continuity and the effectiveness of non-compete agreements emerge. The current landscape necessitates vigilant strategic management by Infosys to retain existing talent and reinforce its leadership position in a competitive market.
Original Source: www.livemint.com
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