In­fosys Told to Fix Glitches on MCA Por­tal Co risks los­ing out on full pay­ment for the project; IT co, how­ever, says en­tire sys­tem ‘per­form­ing as ex­pected’

The Economic Times - - Disruption: Startups & Tech -

Surabhi Agar­wal & Anir­ban Sen

New Delhi | Ben­galuru: In­dia’s sec­ond- largest soft­ware ex­porter In­fosys has been asked to fix glitches on the cor­po­rate af­fairs min­istry por­tal over the com­ing weeks, at least three peo­ple with knowl­edge of the mat­ter said, adding the com­pany risks los­ing out on full pay­ment for the project. The move comes amid mount­ing crit­i­cism for its han­dling of the por­tal.

In­fosys, for its part, de­fended it­self against al­le­ga­tions of not fix­ing the glitches on time and said that the en­tire sys­tem was “per­form­ing as ex­pected”, adding that the ini­tial is­sues faced dur­ing the mi­gra­tion of the sys­tem had all been fixed.

“Dur­ing the first few days af­ter mi­grat­ing to the new sys­tem, there were some is­sues which have been sorted out. There were some de­lays in the in­cor­po­ra­tion of some com­pa­nies due to hol­i­days. The min­istry has made ar­range­ments to clear the pen­dency by de­ploy­ing ad­di­tional as­sess­ment of­fi­cers. This will take around 15 days to get cleared. Mean­while, we would like to state that the sys­tem is per­form­ing as ex­pected,” an In­fosys spokes­woman said in an email to ET.

The min­istry of cor­po­rate af­fairs (MCA), which wrote a let­ter to In­fosys chief Vishal Sikka three weeks ago, says there has been some im­prove­ment in the sys­tem since then, but some prob­lems still con­tinue.

Pres­sure is mount­ing on In­fosys to get the MCA project in or­der even as Niti Aayog CEO Amitabh Kant launched a with­er­ing at­tack on In­fosys on Twit­ter, say­ing that the com­pany had let down the en­tire country. “I have cross-checked with sec­re­tary, cor­po­rate af­fairs. As (a) ser­vice provider, In­fosys has let down the country," tweeted Kant in re­sponse to an ag­grieved user.

A govern­ment of­fi­cial in­volved with the project said the con­tract to In­fosys was given out two years ago on ‘build-own-op­er­ate- trans­fer mode and was meant to up­grade the tech­nol­ogy, which was 10 years old.

In­fosys took over the MCA con­tract from larger arch-ri­val TCS. How­ever, an up­grade of the por­tal in line with the new Com­pa­nies Act was put live on March 27. “Since then we have been hav­ing prob­lems, we would have un­der­stood if they were mi­nor in na­ture but the mag­ni­tude of the is­sues were rather large. We have taken it up strongly with the top man­age­ment of the com­pany, which has en­sured quick res­o­lu­tion,” said the of­fi­cial. The per­son men­tioned above also said the pay­ment for the con­tract is linked to the ser­vice level agree­ments (SLA) and the min­istry al­ways deducts pay­ment if the per­for­mance is not up to the mark. “We al­ways make pay­ments as per the SLA, we al­ways deduct if the com­pli­ance is not there, this was the case even with the pre­vi­ous ven­dor,” he said.

The per­son added that MCA is a con­sol­i­dated por­tal for com­pli­ance re­quire­ments as well as reg­u­la­tory fil­ings. Also, the pro­vi­sions of the new Com­pa­nies Act had to be re­flected through the new por­tal. The ear­lier sys­tem de­signed in 2006 and was Java based, which had to be up­graded with en­hanced func­tions such as data trans­parency, and make it more user friendly along with mak­ing the back of­fice oper­a­tions of RoC cen­tralised etc.


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