IGate CEO Ashok Vemuri may leave after integration

BENGALURU: The Capgemini-IGate merger could lead to a management rejig in the Nasdaq-listed IT services company post the integration that is expected to be completed in nine months.
Ashok Vemuri will continue as the CEO of the company to oversee the integration process. But Capgemini CEO Paul Hermelin said the company would appoint a new head for the combined entity (Capgemini North America).
“We have a lot of Indian leaders in the group executive committee that will be enlarged with the new entity. We have many leaders onsite, in the US, Japan, Paris, and prominent Indian colleagues in Sweden. We will have to decide who will run the combined entity in India very soon…We will decide who will be incharge in revenue share deals. Ashok is very much here and he is beside me,” Hermelin said, responding to a query on likely management changes at IGate.
Vemuri said, “I'm still the president and CEO of the company (IGate) and I have a job to run the company till the time of closing the transaction. Clearly, there is an important task to ensure effective and smooth integration and meet the aspiration Paul has articulated,” he said. Vemuri holds 4 lakh shares in IGate; he recently sold 18,750 shares at $39 a piece.
In a mail to IGate employees, Vemuri said that through the integration process, the company does not anticipate any changes to its organization beyond the ordinary course of business. “We expect it to close in the second half of 2015. Until then, we remain an independent company separate and apart from Capgemini and must continue to act in our own best independent business interest, competing to serve our clients as we always have,” he wrote. Vemuri, who was appointed IGate chief executive officer in 2013, has a five-year employment contract effective September 30, 2013.
There’s speculation that Capgemini will want to take IGate private, and will also operate soon under the single Capgemini brand.
“It doesn't make sense for two different brands to operate in the same space. I hope they retain their culture and the way they interact with clients and employees,” said Phaneesh Murthy, former CEO of IGate.
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