Infosys appoints outsider Salil Parekh as CEO and MD, months after Vishal Sika's exit

MUMBAI: Infosys, India's No.2 IT services company, named Salil S Parekh as chief executive on Saturday, picking an outsider for the job a second time and handing him the twin challenges of reviving growth and making peace between its founders and board. The appointment comes after Vishal Sikka, the former CEO and MD's exit from the company in August this year.

READ HERE | Here is all you need to know about Salil Parekh

Parekh, who will join from consultancy firm Capgemini where he is currently an executive, has been given a 5-year term effective January 2, an Infosys filing to exchanges showed.

U.B. Pravin Rao who was serving as the interim CEO has been re-designated as chief operating officer from Jan. 2, Infosys said.

"After a comprehensive global search effort, we are pleased to appoint Salil as the CEO & MD," said Kiran Mazumdar-Shaw, chairperson of the nomination & remuneration committee at Infosys.

"He was the top choice from a pool of highly qualified candidates. With his strong track record and extensive experience, we believe, we have the right person to lead Infosys."

Former CEO Vishal Sikka announced a sudden exit in August after a protracted public spat with the company's founding executives, led by Narayana Murthy, over strategy and alleged corporate governance lapses.

Sikka, who joined from German software maker SAP SE in 2014, was the first outsider to be appointed CEO of the Bengaluru-headquartered company.

His exit and the prolonged public row led to a reshuffling of the Infosys' board with Nandan Nilekani, a co-founder and former CEO, returning as non-executive chairman.

"We are delighted to have Salil joining as the CEO and MD of Infosys. He has nearly three decades of global experience in the IT services industry. He has a strong track record of executing business turnarounds and managing very successful acquisitions," said Nandan Nilekani, Chairman, Infosys.

Nilekani, credited with four-fold growth in Infosys' revenue to $2 billion during his tenure as CEO, had said at the time that cultural fit would be an important criteria for the top job, making internal candidates "very strong contenders".