The Infosys Saga: An Indian IT Giant Faces a Leadership Crisis

2020 ◽  
Vol 24 (01) ◽  
pp. 13-34
Author(s):  
Ekta Sinha ◽  
Mihir Ajgaonkar

This case is about a flagship Indian IT organization, Infosys, which experienced a large dose of turmoil on 18th August 2017. Vishal Sikka, the Managing Director (MD) and Chief Executive Officer (CEO) of Infosys had resigned, citing ‘continuous distractions’ as the reason. Thus, leaving the organization and creating a shockwave among all the stakeholders, at the time when Indian IT industry was facing the brunt of protectionist policies in the US. Infosys was considered to be a very professional and progressive organization. Vishal Sikka’s departure created a question mark regarding the future direction for the organization. The resignation of Vishal Sikka raised some questions. The objective of the case is to understand the succession issues within Infosys. The focus is to illustrate the importance of succession management within bigger organizations, identifying and preparing in-house talent for bigger leadership roles and the contribution of the board and top leadership to it. The case also investigates the reason(s) as to why it is difficult for the founders to handover the baton to someone else.

Significance This year, it plans to hold its 38th and 39th summits back-to-back on October 26-28. The decision to postpone the first meeting is likely a response to internal strains. The bloc is struggling to deal will the ongoing COVID-19 crisis, increased jockeying among the region’s powers and the fallout of the February 1 coup in Myanmar. Impacts Subregional initiatives such as the US-Mekong Partnership and the China-led Lancang-Mekong Cooperation mechanism will become more prominent. China will push to elevate the ASEAN-China strategic partnership to a comprehensive strategic partnership. With several small states in line to chair ASEAN, some of the bloc's larger members such as Indonesia will assume informal leadership roles.


2017 ◽  
Vol 1 (4) ◽  
pp. 175
Author(s):  
Prosenjit Das

Aim: India has emerged as one of the most favoured destinations in the global Information Technology (IT) outsourcing market. On the other hand, the IT industry has been playing an instrumental role in transforming India’s image from a low income-backward nation to a knowledge-based economy.  Furthermore, the role of IT industry has been pivotal in putting India on a higher growth path. In addition, India’s IT industry has been showing robust performance in revenue earning, particularly in export revenue. However, the performance of this industry is likely affected by some recent global phenomena, such as 2008’s subprime crisis originated in the US, uncertainties in changes in H1-B visa rules, Britain’s exit from the EU, automation etc. There are other factors, like exchange rate volatility, emerging competition from other low-cost outsourcing destination countries, are also posing threat to India’s IT-outsourcing business. Against this backdrop, it is crucial to analyse the sustainability of performance of Indian IT industry. Thus, the present study aims at assessing the performance of Indian IT industry and evaluating the determinants of performance thereafter.Design / Research methods: To realize the objectives of the study, firm level data has been collected from the Centre for Monitoring Indian Economy (CMIE) Prowess database. For empirical analysis, we have applied a two-stage method. In the first-stage, we have used Data Envelopment Analysis (DEA) based Malmquist Productivity Index (MPI) to evaluate the Total Factor Productivity Growth (TFPG) of Indian IT industry during the period from 2004-05 to 2014-15. For this purpose, a balanced panel consists of 70 IT firms has been considered. Further, the TFPG has been decomposed into three components, viz. Catch-up, frontier-shift, and scale efficiency change (SEC). Consequently, in the second-stage, three random-effects panel regression models are considered to investigate the determinants of TFPG, catch-up, and frontier-shift separately. Conclusions / findings: During the study period, the average TFP and frontier-shift has been improved. On the other hand, catch up effect is found to have declined. The variables, such as export intensity, salaries and wages intensity have positive and statistically significant impact on the catch-up and frontier-shift. Export intensity has positive impact on TFPG. Age of the firms has positive impact on catch-up and TFPG. Salaries and wages intensity has positive impact on TFPG. On an average, the firms which spent on research and Development (R&D) have experienced improvement in TFPG and frontier-shift. The public limited firms performed better than their private counterparts in terms of catch-up, frontier-shift, and TFPG. The non-group firms have performed better than the group firms in case of catch-up. On the other hand, on an average, the firms exhibiting decreasing Returns to Scale (DRS) are found to have registered deterioration in catch-up and TFPG with respect to the benchmark firms which are exhibiting Constant Returns to Scale (CRS). The firms exhibiting Increasing Returns to Scale (IRS) have shown improvement in catch-up and TFPG over the benchmark CRS firms. The impact of the US subprime crisis has been negative on catch-up, frontier-shift, and TFPG. The firms, which have spent on royalty, have experienced improvement in catch-up and TFPG. Originality / value of the article: So far in our knowledge, not so many studies of this kind have been done in the arena of empirical research pertains to the IT industry, especially in a developing country like India. Moreover, we have not found any study that covers the span of the dataset considered in the present study. In addition to this, the present study has employed a random-effects panel model to accommodate a number of time-invariant dummy variables which would not be possible in case of a fixed-effects panel model incorporated by some previous studies of this genre.Implications of the research: The identification of the determinants of TFPG and its components would help the stakeholders and policy makers of the IT industry to formulate appropriate policies which could mitigate the risks faced by the industry on one hand, and stimulate the forces that would enhance the growth of this industry on the other. For instance, to mitigate future risks, Indian IT industry should reduce its dependence on the US and UK markets. Besides, it should explore new markets in the EU, and other emerging economies where opportunities are plenty. To maintain India’s robust global position in the long run, Government of India should play the key role in providing world class infrastructure and telecommunication facilities to its IT industry. In addition to this, Government needs to rationalise and simplify the existing Indian labour law to facilitate the business of IT industry. Various stakeholders along with the Government should put necessary efforts to develop the domestic IT market as there exists ample of opportunities in future. Keywords: information technology industry, data envelopment analysis, Malmquist productivity index, random-effects model, total factor productivity, catch-up, frontier-shift, India. JEL: C23, C61, L86, O47


2020 ◽  
Vol 76 (2) ◽  
Author(s):  
Martin Mujinga

The Methodist Church in Zimbabwe (MCZ) was established in 1891. In 1977, it was granted autonomy by the British Methodist Church. From 1891, top church leadership has been dominated by male clergy. This article explores three instances of a challenge to this trend. The first occurred in 1994 when there was a leadership crisis in one of the districts, and for the first time, a woman was appointed district chairperson. The second followed the election in August 2004 of a male presiding bishop. However, allegations of moral impropriety were made against him. He approached the secular courts, and it led to his withdrawal from the position. The church appointed a woman to the position of acting presiding bishop. When the time came for the substantive post to be filled in August 2005, she was not confirmed in the position; a man was elected instead. The third relates to the controversial appointment in 2017 of a woman to one of the five vacant positions of district bishops. The aim of the research was to analyse the way in which these three women rose to positions of leadership in a male-dominated church. A qualitative research methodology was followed, with data being collected through open-ended interviews. The study highlighted that to be a female clergy leader in the MCZ entails rising against all odds. The study concluded by encouraging the MCZ to support women on their path to leadership rather than overlooking or, worse still, undermining them.Contribution: In spite of the challenges female clergy face in their quest for leadership roles, this feminist ecclesiological study shows stories of rising against all odds, describing the momentum-gaining progress of the ecclesiastical effort in the MCZ to accommodate female leaders, despite slow-moving processes.


2020 ◽  
Vol 19 (3) ◽  
pp. 99-102
Author(s):  
Debra Squyres

Purpose Every day, nearly 10,000 employees in the Baby Boomer generation retire from the US job market. However, many in this generation are not ready for a quiet, traditional retirement and are choosing to remain in the workforce – simply on their own terms. With more employment opportunities open to candidates in the US job market than almost ever before, employers should prioritize engaging these seasoned hires in their recruitment strategies. Design/methodology/approach Beamery’s Vice President of Customer Success Debra Squyres reviewed the most important reasons employers should not disregard the “forgotten generation” of candidates in their hiring strategies, especially when considering the diverse skills and roles Baby Boomers can bring to an enterprising workforce. Findings Among other job-specific skills and experience, the greatest benefits of recruiting new hires from the Baby Boomer generation are the candidates’ years of experience and likely leadership roles, propensity for in-person relationship-building and unique perspective in an ever-diverse workforce. Originality/value Highlighting the greatest benefits of Baby Boomer hires to employers is especially beneficial for those organizational leaders managing talent acquisition and retention.


Author(s):  
Petter Gottschalk

Information systems (IS) leadership roles have undergone fundamental changes over the past decade. Despite increased interest in recent years, little empirical research on IS managers has been done. This article presents results from a survey in Norway. The survey collected data on general leadership roles such as informational role, decisional role, and interpersonal role, as well as on specific IS leadership roles such as chief architect, change leader, product developer, technology provocateur, coach, and chief operating strategist. The empirical analysis indicates that strategic responsibility as well as network stage of growth influence the extent of informational role, while the extent to which the chief executive uses IT influences the extent of decisional role, and the extent to which subordinates use IT influence the extent of interpersonal role. IS managers with greater operating responsibility will be chief architects. The role of a change leader is positively influenced by the number of years in IT, the extent of IT use, the extent of strategic responsibility, and the organization’s revenue, while it is negatively influenced by the number of years in the current position. Product developer can be predicted by strategic responsibility and chief executive’s IT use, while technology provocateur can be predicted by the extent of IT use. Coach can be predicted by the extent of subordinates’ IT use, and chief operating strategist can be predicted by the extent of strategic responsibility. Although several significant predictors of IS leadership roles were identified in this research, the search for more significant explanations should continue in future research.


1988 ◽  
Vol 30 (2-3) ◽  
pp. 189-212 ◽  
Author(s):  
Bruce Michael Bagley

US Chief Executive Ronald Reagan Declared WAR on drugs in February 1982, and pledged his administration to the task of curtailing the burgeoning drug epidemic in the United States. To accomplish this urgent “national security” objective, the federal government rapidly increased expenditures for narcotics control programs during the ensuing seven years of his two-term presidency, reaching $4.3 billion annually in 1988. Enthusiastically backing the president's initiative, the US Congress approved tougher national drug legislation, widened the US military's involvement in the war, supported the administration's drive to intensify interdiction efforts along US borders, and expanded USdesigned eradication, crop substitution, and law enforcement programs in foreign source and transit countries. First Lady Nancy Reagan launched her “Just Say No” campaign, flooding the American educational system and the public media with anti-drug messages. Ostensibly, all sectors of American society enlisted in the war on drugs and the country began mobilizing for battle.


2012 ◽  
Vol 3 (4) ◽  
pp. 179-181
Author(s):  
Kevin O’Brien

I have been asked to provide an update on the way that we see the General Dental Council (GDC) evolving over the duration of time that I will be Chairman (until September 2013). I have been in post for almost twelve months and am pleased to report that we are seeing a consistent improvement in performance across all areas. This is due to the improved working of the council and the extraordinary effort that the chief executive, the executive directors and all the staff have put in over the last year.


2021 ◽  
Author(s):  
Jorge Carreto Sanginés ◽  
◽  
Margherita Russo ◽  
Annamaria Simonazzi ◽  
◽  
...  

largest world producer of automotive vehicles. The Mexican experience is part of the more general case of the “integrated peripheries.” The development of these cannot be accounted for separately from the developments occurring in its core country. Unlike the core-periphery literature, however, our analysis emphasizes that the various clusters of cores and integrated peripheries are not alike. In the case under study, the core has been systematically lagging behind the main transformations pioneered by its competitors. The paper traces the evolution of the Mexican automotive industry, emphasizing the difficulties faced by a late-comer country in developing an independent industry, and the importance of policy choices as well as the macroeconomic context in affecting its development. NAFTA represents the culmination of an integration process that has profoundly transformed the structure of the Mexican automotive industry, deepening its dependence on the US market. While there is no doubt that it has contributed to the spectacular growth of the Mexican auto industry, whether it also increased its resilience or, rather, its dependence is still an open question. This issue is particularly relevant in view of the transformations that are taking place in the automotive sector and in the geopolitical scenario. These include the end of NAFTA and the advent of USMCA, the entry of powerful competitors into the global market, and the transition to electric and autonomous vehicles, which all entail risks and opportunities. The lens of the centre-periphery relationship can help to understand the present integration of North America and its future direction.


Author(s):  
Dr. Mohammad Talha ◽  
Abdullah Sallehhuddin ◽  
Md Shukor Masuod

This paper briefly discusses the corporate governance and directors’ remuneration as being practiced by five different ASEAN countries i.e. Singapore, Malaysia, Indonesia, Philippines, and Thailand. Governance is about how an entity is being directed and controlled, while corporate governance is about a system, procedure or mechanism of balancing between directing and controlling business entities’ internal matters and the demand of their external shareholders and stakeholders. The paper summarizes the development of corporate governance and directors’ remuneration in these countries. An attempt has also been made to highlight issues regarding the need of disclosure of individual director’s remuneration, the need of shareholders’ approval on directors’ remuneration, the need of shareholders’ approval on stock based incentive plan, approval of directors’ remuneration by a committee at board level, the separation of role of the Chairmen of Board of Directors and Chief Executive Officers, and the recommended maximum length of period offered to directors. It later focuses on the progress made by these countries in further uplifting their corporate governance practices. The paper also examines some arising pertinent and puts forth some recommendations on how the future direction of the development of corporate governance in ASEAN countries with respect to directors’ remuneration shall take shape.


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