LIVE AND EXCLUSIVE:INFOSYS TOP BRASS TALK TO b&e ON LIFE AFTER DEATH AND ON THE ROAD AHEAD. deputy editor virat bahri GIVES THE INSIDER ON THE STRATEGIC LESSONS FROM INFOSYS!
“Our growth has significantly come down – from 35% to 7% to much lesser. It is a failure in some sense, since the opportunities are there, we have customer relationships, so I do feel we could have done better.” We’ve met S. Gopalakrishnan (Kris, for everybody), CEO and MD of Infosys, previously too, but perhaps this is the first time we sense his dejection that things could have turned out better for Infosys. Of course, nobody could have predicted the financial crash with accuracy; but given the fact that the crash happened, and with it a quasi bloodbath amongst Infy’s clients in the financial sector, could things have turned out differently at Infosys? Kris seems to feel so, pointing out how marketing initiatives in terms of business development are taking more time, as well as the inappropriately high dependence of Infosys on repeat business; a factor which has touched 97.6% now. For him, these could well be considered his current failures.
Factually, it’s not as if things are that bad. In reality, they’re brilliantly good, at least when you look at annual figures! For starters, they’ve been rated India’s 7th most profitable company in the 2009 B&E Power 100 listings. The five year CAGR for revenues, till the month ending June 2009, was 32%. The five year net income CAGR at the same time stood at 34%. Market capitalisation was screaming at $21.08 billion in July ‘09. Now it’s screaming better. The number of clients contributing to business has grown from 141 in the year 2004 to 330 this year. Since Kris took over, the revenue per client has regularly increased, Infosys has gone into newer services, entered newer markets, hired more people, consolidated existing clients, won a few awards, and a lot more. What else could a CEO, whose company is growing annually, both in revenues and profits at an obscene rate of 30%, ask for? Well, it’s actually which side of the ‘half-empty and full’ glass you’re viewing the flat world from. That is, if you thought the world was one glass.
“Our growth has significantly come down – from 35% to 7% to much lesser. It is a failure in some sense, since the opportunities are there, we have customer relationships, so I do feel we could have done better.” We’ve met S. Gopalakrishnan (Kris, for everybody), CEO and MD of Infosys, previously too, but perhaps this is the first time we sense his dejection that things could have turned out better for Infosys. Of course, nobody could have predicted the financial crash with accuracy; but given the fact that the crash happened, and with it a quasi bloodbath amongst Infy’s clients in the financial sector, could things have turned out differently at Infosys? Kris seems to feel so, pointing out how marketing initiatives in terms of business development are taking more time, as well as the inappropriately high dependence of Infosys on repeat business; a factor which has touched 97.6% now. For him, these could well be considered his current failures.
Factually, it’s not as if things are that bad. In reality, they’re brilliantly good, at least when you look at annual figures! For starters, they’ve been rated India’s 7th most profitable company in the 2009 B&E Power 100 listings. The five year CAGR for revenues, till the month ending June 2009, was 32%. The five year net income CAGR at the same time stood at 34%. Market capitalisation was screaming at $21.08 billion in July ‘09. Now it’s screaming better. The number of clients contributing to business has grown from 141 in the year 2004 to 330 this year. Since Kris took over, the revenue per client has regularly increased, Infosys has gone into newer services, entered newer markets, hired more people, consolidated existing clients, won a few awards, and a lot more. What else could a CEO, whose company is growing annually, both in revenues and profits at an obscene rate of 30%, ask for? Well, it’s actually which side of the ‘half-empty and full’ glass you’re viewing the flat world from. That is, if you thought the world was one glass.
Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
and Arindam Chaudhuri (Renowned Management Guru and Economist).
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