As Salil Parekh takes over the reins of the $10 billion tech major Infosys in less than a month, the company and its well wishers may say a silent prayer that it should not go through another annus horribilis.

It is not going to be easy for Parekh as CEO and MD of a company that went through a messy public battle on ostensibly governance issues. The ensuing soap opera seriously harmed its brand image and standing in the global marketplace. Against that backdrop, his challenges would include: healing the wounds between management, the board and the founders, building companywide support for its strategy, changing the culture from an inward-focussed to a customer-centric one, lowering investor expectations on margins and preparing the board for a quick and smart in-organic play.

Parekh will also have the task of eliminating the structure and function overlaps within the company which is critical for better augmentation of its strategy. He may need to factor in old Infosys hands who were once in the race for the top job. His focus would also be on stemming the decline in the traditionalist business while investing and growing the digital portfolio. It is important for him to reassure clients and employees that business will continue as usual. For that he needs the leeway to make decisions that require investments in acquisitions and products without having the founders breathing down his neck. He also needs to establish an open communication channel between all stakeholders in the company.

Collegial style

Peter Bendor-Samuel, CEO of Dallas-based analyst firm Everest Group says: “We don’t yet know what kind of leader Salil will be as a CEO, as this is his first such role at any firm. But looking at his past experiences in consulting and service practices, we can anticipate that he is likely to have a collegial style and be able to organise strong-willed and skilled people to perform with excellence.”

“This is a different style than some of the past Infosys leaders who have favoured a more command and control style. I think Salil’s demonstrated ability to build consensus will stand him in good stead as he heals the internal wounds between the differed factions, and fills the cracks appeared in the board and relationship with founders,” says Bendor-Samuel.

Yes, there are massive challenges ahead of Parekh and Infosys. But the services winners of the last three decades have thrived on change, disruption, and uncertainty, which is exactly where the Infosys of 2018 and beyond needs to focus.  He has so far had a career filled with cultural affinity across American, European and Indian businesses, which is so essential in today’s environment, says Phil Fersht, CEO and Chief Analyst at Cambridge-based HfS Research.

Fersht observes that Parekh is capable of ticking all the right boxes without upsetting the apple cart. “He comes without the risky unknowns of a guy like Vishal. Salil is not just a services man, but also a real consulting man. He will help Infosys build and grow in the high-end consulting business.”

“The only real lesson to be learned from the whole Vishal saga is that the firm needs a leader who understands how to grow, divest, acquire and lead a technology services and consulting business.  Vishal provided the dreams, the style, technical prowess and the cultural impact... what he failed to deliver was being able to apply these skills effectively to a traditional services business,” adds Fersht.

Balance

Infosys may be trying to get the balance right by bringing an outsider again. “Having someone who hasn’t been sucked into this internal quagmire — and can drive change with a little distance from the intense (and proud) history —is the right way to go.  Again, this (getting an outsider) is a brave decision by the company,” Fersht points out.

Ray Wang, CEO & Founder, Constellation Research,  a technology research and advisory firm based in Silicon Valley says Parekh has always been a focussed leader. He sees the numbers and translates them to the human requirements for achievement.   He can be hands-on and he can be hands-off but he always has a good grasp on the data.

“Clients like his honest approach. They have experienced transformations with his teams. He has earned their trust through delivery,” says Wang.

London-based Hansa Iyengar, a senior analyst at research and consulting firm Ovum, says, from anecdotal evidence, Parekh is not a flamboyant leader. He prefers to let results do the talking which is more to the liking of Infosys’ founders and board. Parekh will not rock the boat, so to say, and he comes with a solid services background which Sikka did not have. Moreover, having operated from India, Parekh is a veteran in the Indian way of doing business and can work around the internal politics as well.

“Parekh has a very strong track record. The business units he managed in Capgemini were responsible for nearly half of the company’s revenues. He has worked with clients from across the globe and if you look at Capgemini’s results (the company has performed very strongly despite headwinds) it is clear that it was under good leadership,” adds Iyengar.

The incoming Infy boss is a member of the group executive board at French tech major Capgemini. He lived through two successful mergers: Ernst and Young and Capgemini in the 2000s, and more recently the Capgemini and iGATE merger. For the Paris-based IT major, he grew accounts like Royal Mail, the British postal service and courier company and US-based GE, and also spent a long time in financial services, worked with global banks like the US-based HSBC.

At Capgemini, Parekh was responsible for overseeing a business cluster comprising Application Services (North America, UK & Asia), Cloud Infrastructure Services, and Sogeti (Technology & Engineering Services Division). He was also the chairman of the company’s North America Executive Council. He leveraged Digital and Cloud services to drive transformation for the clients. He was the architect of Capgemini’s growth and turnaround in North America.

As he punches his presence at Infosys on January 2, Parekh, father of three sons, will become the second CEO of Infosys with a Gujarat connection —Vishal Sikka has a Baroda connection. “Infosys is looking for a leader who can take them through the transition in the next three-to-five years. To succeed in his role as a CEO, Salil needs to learn to be an Infoscion too,” says Wang of Constellation Research.