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    Is Salil Parikh ready to bury Vishal Sikka's legacy at Infosys?

    Synopsis

    After Sikka's controversial exit, it was not clear if the company wanted to continue on the path charted by him. Today the new CEO gave quite a few signs.

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    When Salil Parikh joined as the CEO of Infosys a few months ago — after nearly a year of spats between the high-profile promoters and the management at India's iconic software services company — he was expected to bring clarity to the firm's business strategy. After the controversial exit of his predecessor, Vishal Sikka, it was not clear if the company wanted to continue on the path charted by him.

    Sikka left Infosys abruptly in August last year after a prolonged standoff with promoters, including NR Narayana Murthy over allegations of corporate governance lapses and hefty severance packages of former executives.

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    Infosys now under Parikh is looking for buyers for its subsidiaries including Panaya, that was at the heart of the boardroom coup.

    The acquisition of the Israeli firm came in controversy after allegations of wrongdoings against Sikka. Infosys said the sale was expected to be completed by March 2019. Infosys on Friday reclassified as Rs 118 crore as impairment loss with respect to Panaya in the consolidated profit and loss for the quarter and year ended March 31, 2018, and lined up the company for sale.


    After conclusion of a strategic review of its portfolio of businesses, the company has initiated identification and evaluation of potential buyers for its subsidiaries, Kallidus and Skava and Panaya (collectively referred to as the “disposal group”), it said in a statement

    The global environment is challenging for Infosys. Automation has hit the company's business and so have visa restrictions and preference for local hires in the US. Sikka was the ideal candidate for Infosys CEO in such circumstances.

    With his technological prowess, he was just the techie Infosys needed. A PHD from Stanford University, Sikka wrote his thesis on artificial intelligence (AI), the biggest challenge that has emerged before the company. John McCarthy, an AI pioneer who coined the very term, was Sikka's teacher. Apart from top academic credentials, Sikka proved his technological mettle in business. Working as the CTO at German tech giant SAP, Sikka headed the development of Hana platform, one of the biggest innovations in the enterprise software segment. There are more than 1,200 startups from 57 countries building applications on SAP HANA. He set up and sold his own startups iBrain and Bodha, both in the AI field. At Infosys, he launched Nia, the next-generation AI platform for businesses.

    Panaya fitted well into Sikka's vision. The automation technology firm that was building new lineup of products and tools to make automation for large customers more efficient and cost-effective. However, it remains to be seen if Infosys is getting rid of Panaya or the very model of growth being driven through innovation by acquired companies.
    The Economic Times

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