Infosys Ltd said on Friday the company had started a search for chief executive SD Shibulal’s successor and appointed advisory firm Egon Zehnder to assist the nominations committee in identifying external candidates.
Shibulal, one of the seven Infosys founders, wants to retire as chief executive of the company on or before January 9, 2015, or when his successor is ready to assume office, whichever is date earlier, a company statement said.
Meanwhile, the exodus of senior executives and staff at the IT outsourcing firm could hamper efforts to win lucrative contracts in the US and Europe, and weigh on its profit growth outlook for this year.
Nearly a fifth of the workforce had left the company in the quarter ended December following the return from retirement of founder NR Narayana Murthy in June to turn around the firm. So far, nine senior executives have left.
Infosys has the highest attrition rate among India’s top-three IT outsourcing firms. The senior management changes make Infosys “highly susceptible” to miss out on an expected pick-up in growth in India’s $100 billion software services and outsourcing industry, said broker Ambit Capital. “Absolutely, the high staff turnover creates concerns about the growth outlook,” said Walter Rossini, a Milan-based portfolio manager for Gestielle India, which manages Indian stocks worth about $200 million, including shares in Infosys.