Almost nine months after the departure of former chief executive officer Vishal Sikka, Infosys seems to be wiping out the last few markers of his tenure.
On 13 April, Infosys declared that the acquisitions it had made under Sikka were not yielding much results and therefore the company has decided to jettison two of these acquisitions – Skava and Panaya – through a proposed sale, reported Livemint.
Two years ago, Infosys had spent nearly $320 million on the companies. Quite interestingly, it has written down $90 million – nearly half the amount it spent on acquiring Panaya.
As part of our strategic review, we put together a set of criteria for our entire portfolio. When we looked at Skava and Panaya, they did not meet that criteria. We then decided to take the actions that we’ve taken.Salil Parekh, CEO, Infosys
Since Sikka’s exit in August, almost all the former SAP executives who joined Infosys have left the firm.
The company also carried out a board reshuffle, by deciding to name Kiran Mazumdar-Shaw as its lead independent director.
Under the leadership of of non-executive chairman Nandan Nilekani and new CEO Salil Parekh, many of the the earlier management decision’s have been reversed. For example, three years back, Sikka outlined his aspirational target to make Infosys a $20 billion company with 30 percent profitability by 2021. However, Infosys has now lowered its operating margin band for 2018-19 to 22-24 percent.
(With inputs from Livemint)
(At The Quint, we are answerable only to our audience. Play an active role in shaping our journalism by becoming a member. Because the truth is worth it.)