4-month hunt ends: Infy names Salil Parekh CEO

Salil S. Parekh

IT major Infosys on Saturday announced appointment of Salil S Parekh as Chief Executive Officer (CEO) and Managing Director effective January 2, 2018.

10- Salil S Parekh will only be the second non-founder full-time CEO of Infosys after Vishal Sikka, who exited the company abruptly in August this year.

Co-founder and Board Chairman Nandan Nilekani said: "We are delighted to have Salil joining as the CEO & MD".

The appointment ends a almost four-month long search for the top job at India's second largest IT services firm. "He has a strong track record of executing business turnarounds and managing very successful acquisitions", said Nandan Nilekani, Chairman, Infosys. Parekh, who will take over on January 2, 2018 for a period of five years, was a member of the Group Executive Board at French firm Capgemini, Infosys added.

Parekh has a Bachelor of Technology (B.Tech.) degree in Aeronautical Engineering from the Indian Institute of Technology, Bombay (IIT-B) which he completed in 1986. "My best wishes to him", said Murthy in a statement to Mint. Sikka had joined Infosys from German software maker SAP SE in 2014, and was the first outsider to be appointed CEO of the Bengaluru-headquartered company.

Former CEO Vishal Sikka announced a sudden exit in August after a protracted public spat with the company's founding executives, led by Narayana Murthy, over strategy and alleged corporate governance lapses.

Capgemini released a statement on December 2, announcing Parekh's departure from the company's board on January 1, 2018.

Interestingly on Saturday, Capgemini put out a separate press release, saying that Parekh "decided to leave the Group in the context of the recent managerial evolutions communicated in October".

Parekh has been appointed for a five-year term effective January 2, according to an Infosys filing to exchanges.

After months of stress, turmoil and billions of dollars in shareholder value destruction, Infosys has finally named a new CEO, Capgemini's Salil Parekh. However, unlike the Tatas who finally opted for an insider to be chairman of Tata Sons, Infosys has again looked outside and brought in Parekh, apparently much to the disappointment of the internal candidates.

British-based Aston Business School research scholar Sanjoy Sen said Parekh's appointment would be viewed positively in Infosys' journey to rebuild its business positioning.

Infosys will also hope that Parekh's background in the financial services industry throughout his career will help it garner more deals in the BFSI sector across Europe and North America.

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