IT bellwether struggles to retain talent
Jan 10 2014 , Chennai
The market reacted positivly to the company beating’ estimates and the stock too surged initially. However, at the end of the day, it registered a mere 2.84 per cent increase in value at Rs 3,548.9, over it’s previous close of Rs 3,451.05 on BSE.
However, analysts and market experts soon found out that though Infosys had said, its gross employee addition was 6,682 during the quarter ended December 2013, the overall headcount actually came down by over 1,800 from the previous quarter at 1,58, 404 employees.
The marginal increase in its stock price indicated the market’s concern over a spate of senior level exits that it had witnessed in the recent past, even since Narayana Murthy returned at the helm in June last year. The lower headcount may actually be indicating an increasing attrition due to exits at the mid-level and lower-level employees.
Both Murthy and Infosys MD, Shibu Lal sought to address this issue to create a sense of confidence among investors as well as send a positive message to employees as well. “It is good for them and is good for the company,” Murthy said, when queried about the spate of senior level exits.
“We were the first company to set up an academy for leadership,” said Murthy on the availability of resources to take the firm forward.
“We have people who are already leaders at tier I, tier II and tier III levels. And the system has been developed in such a way that there was always multi-level relationships with clients and we are sure to maintain this continuity,” Shibulal added, allaying fears..
Over the past few months, Infosys saw the exit of some senior and top-level executives. V Balakrishnan, a board member and head of BPO business, was the latest to leave. Basab Pradhan, Shaji Farooq and Sudhir Chaturvedi were some other top executives to have quit the company. The company had seen at least nine top level exits since Murthy’s return.