JOIN USSalil S Parekh, the newly appointed MD & CEO of Infosys has a challenging job ahead as he has to identify major shifts in the technology space and steer the company towards the high growth path. However, the vast experience he has gained in multiple geographies in Capgemini will come to his help, analysts tracking the sector said.
Even though hand-picked by Chairman Nandan Nilekani, the new CEO has the mandate to revive the already dented confidence of the company at the same time keep the founders in good humour.
According to Angel Broking VP - IT Research, Sarabjit Kour Nangra, Parkeh takes up the mandate at a time when Infosys is battling with the industry challenges like commoditisation of traditional services and foray into new services.
"Parekh has a challenging role of providing vision, stability and thus generating shareholder wealth. While the new CEO's extensive, tenure in Capgemini, among large companies with favourable digital perception, will be useful. In addition, Parekh has a strong technology background and rich IT services experience," said Nangra.
Parekh will find comfortable by the fact that Infosys recently cut its revenue guidance to 5.5% to 6.5% from 6.6% to 6.8% earlier for fiscal 2018.
His more than 25-years experience in IT industry and successful integration of iGate to Capgemini for their low cost IT service execution strategy will come in handy for him to wade through the storm, he said.
That traditional offshoring is facing threat from SMAC technologies, Infosys will have to take a call on making traditional services to be made profitable by automation and value-added services.
Parekh will have to take a call on Vishal Sikka's tech vision challenges which was led by his four acquisitions spending $390 million and £7.5 million. Sikka's acquisitions include Panaya (Israel), Skava (USA), Noah-Consulting (USA) and Brilliant Basics (UK).