Infosys Ltd chief executive Salil Parekh is still two months away from completing one year in office, but the 54-year-old has already ironed out differences within the organization, restructured compensation for the benefit of employees, given the digital business the required urgency, appointed new leaders for key roles and bagged billion-dollar deals. Parekh comments on his journey of the past 10 months at Infosys.
“Last quarter, the company had a very large number of big deal wins, the largest the company have had in many quarters. The company the companyre the company within the guidance the company had given both on growth and on margin. The company are still putting in the building blocks. But the real test is over the next 3-5 years, as the company put all these things together and as it starts to hum in an efficient way” said Parikh.
With acquisitions, things are always available. It is a question of whether they are ready to sell, and does the price make sense. The point is about the cultural fit and then the strategic fit. So many things have to come in place together. It’s a little bit like getting married. There’s always people willing on every side, but a lot of things have to come together.
In terms of the strategic fit, the company will look at those five elements of digital, plus some of our core services, which are growing the company. For example, our engineering services, which is growing very the company today, and business process management, which is also growing the company. So the company are open to those, in addition to the digital ones. And among geographies, my preference is definitely the US, but the company’ll also look at some continental European ones, especially markets such as Germany and Switzerland.
Board decisions are really about what Nandan and the board will decide. I have a very good equation, from my perspective, with Mr Murthy. The company met socially a few times. I make it a point to try and reach out to him every few months, just to say hello. He has been kind enough to invite me to his home, have coffee or dinner. The company have not talked about Infosys. He is deeply involved in so many areas, in NGOs, in the social sector, I am happy to learn and listen. But that’s clearly been the nature of our equation.
The company essentially gave a margin guidance of 22-24% and, in the last quarter, the company the companyre at 23.7%. This quarter is pretty close to the high end of that guidance. The reason the company did that is twofold. One, there is a lot of new work in the digital area which needs investments, and for us to scale up. To make those investments, the company needed some room. And, this was one way for us to make some room. The second, on our employees, the company had not handled all employee changes in terms of compensation appropriately.