‘New Infosys chief has to take it to the next orbit’

Infosys needs to become a truly global corporation, not just an Indian corporation with a global presence, NS Raghavan, one of the seven founders of the company, tells DNA in an interview.

Nadathur S Raghavan left Infosys in 2000 to make way for Nandan Nilekani to take over as chief executive. He now runs several ventures in the hospitality and education sectors, but remains a keen observer of Infosys without getting too involved. He believes that Infosys is in a state of transition and that the day is not far when non-founders would call the shots at India’s second largest software services exporter.

One common reaction to Infosys’ management succession announcement is that it looked and felt like it was scripted well in advance and that everybody knew their parts and played it very well…
To be honest, I had expected this decision. But there were not very many choices before the board. They were unlikely to have been looking at hundreds of external candidates. Transition from a promoter/founder led company to a professional/non-founder led one is not easy, and there were not many combinations available in terms of the choices. So in that sense, yes this does feel scripted. The other option would have been to go in for radical changes with very dramatic moves by bringing in a new set of people, but that would have put a lot of burden on that management and the board and introduced a lot of volatility in the growth of the company.

So when do you expect to see this transition phase moving to the next stage?
The good signal from today’s announcement is that three members from the executive council will be moved into the board. That is the general indication that we should be following. Infosys is pointing towards the time when this rung of leaders would play a greater role. They did not announce the names of these leaders because they may want to ration out the changes a little bit at a time rather than all at once to ensure that senior executives are not unsettled

Do you still feel good about the decision you took in 2000 to move out of Infosys, making way for Nandan Nilekani?
Absolutely. Everything I have done, I did after careful consideration and I’m happy. My sons are also now working in various initiatives and I’m quite happy.

When you left you had said that older generation leaders like you should make way for the younger lot to take over. Has that tradition been respected at Infosys since then? Are you happy at the way things have panned out at Infosys?
For me it was a question of the energy and time commitments required for running a company like Infosys. You know, running around and working 15-hour days. I thought I was not up to it at that point of time. I did what I thought was right for me. It is up to them to do what they think is right. Murthy left a little early, so Nandan took over, and then he left for Kris to take over, and hopefully now Shibulal will take over. There has been a lot of talk about professionals being denied opportunities. But I believe that promoters who have been with the company for 30 years and who have some passion and emotional attachment, if they are quite competent and can take on the responsibility, then I don’t see a reason why they should not be given the opportunity. But if they are not competent, then they should not. That is fair.

In the last few quarters Infosys has slipped a little bit relative to competition. Is there anything to be read there in terms of incompetency?
I don’t think so, although I agree with you that if there is a slowdown, some action has to be taken to see how to improve. Changes are required, even if those are drastic measures, to see that the topline and bottomline are being grown aggressively.

These are things that every company should do and Infosys has enough senior people to do it and I’m sure they would take all appropriate actions to ensure they remain competitive and not let their market position be compromised.

In the current competitive dynamics in the IT industry, does Infosys need a leader with a different profile and attitude?
I think Infosys understands the current competitive dynamics. But in another light, I think Infosys is at a stage in its development where it needs to become a truly global corporation, not just an Indian corporation with a global presence. That requires a few real steps that are radical in nature. And in that area, fresh blood, fresh ideas and strategies may give some fillip.

What radical measures would you advocate?
That may mean somebody with an international reputation. The board should recognise that we have been growing steadily alright, but we do need to take it to the next orbit and become a truly global corporation. Maybe the new chairman and CEO should start looking into that. We should not be worried so much about a little slip here and there from quarter to quarter.

Have you been following the growth of the company since you left?
Not really. Once in a while I speak with the people, but otherwise I haven’t really stayed in touch.

Why is that? You were all very close in the beginning…
Once you leave the organisation, they can take care of it. You don’t have to be involved.