Setback for Sikka as Infosys America’s head steps down
BENGALURU: Infosys Ltd America’s head and global head of manufacturing, consumer packaging and goods and retail units, Sandeep Dadlani, has resigned, in a big setback to chief executive officer (CEO) Vishal Sikka.
Sikka had recently entrusted Dadlani with the additional responsibility of generating more business from the company’s new software solutions, including artificial intelligence platform Nia.
Dadlani, who was one of the four presidents at Infosys, was overseeing business amounting to 34%, or $3.5 billion of Infosys’s $10.2 billion revenue, and was also the chairman of Edgeverve, a subsidiary of Infosys, India’s second-largest computer services firm.
The reason behind Dadlani’s departure is not clear although he is learnt to have put in his papers last week, according to a person familiar with the development who requested anonymity. “Sandeep has played a key role in the success of Infosys over his career and in our transformation journey these past three years. We wish him the best in the journey ahead,” Sikka said in a statement.
The company announced the appointment of Karmesh Vaswani as head of retail, consumer packaging and goods, and logistics, and Nitesh Banga as the head of manufacturing.
Dadlani, who joined Infosys in January 2001, was the front-runner to take the top job at Infosys in 2014 when Infosys scouted for a CEO, before eventually deciding to hire former SAP SE board member Sikka.
Dadlani’s departure is a blow to Sikka who is battling against time to put Infosys back on the growth pedestal, as an embattled board and management face questions on poor corporate governance from some of the company’s founders led by NR Narayana Murthy.
This latest exit is important for two reasons. First, it puts a question mark on Sikka’s stint as CEO. Nine executives of the rank of executive vice-president (EVP) and above have quit Infosys since he took over as Infosys’s first non-founder CEO in August 2014.
“Sandeep’s exit is of concern because it suggests that Vishal is finding it difficult to retain his senior management team,” a Mumbai-based analyst at a foreign securities house said on condition of anonymity. “This despite the fact that Infosys is paying a handsome salary to all its senior executives.”
Many executives in the past have questioned Sikka’s management style, and whether he is finding it difficult to build a stable senior management team.
Second, Infosys, like its other Indian IT competitors, is seeing less business from retail giants Wal-Mart Stores Inc. and Best Buy Co. Inc., as traditional retail companies try to fend off competition from the rise of e-commerce companies like Amazon as more people opt to buy online.
Retail companies are the second-largest buyers, behind banks and financial services clients, for services from homegrown technology firms, and Infosys losing its senior-most executive managing business from retail clients is another worry for Sikka.
Shares of Infosys fell 1.24% to ₹940.50 at the close of trading on the BSE on Friday. The benchmark Sensex edged down 0.06% to 31,056.40 points.