Infosys appoints BG Srinivas, UB Pravin Rao as presidents - Angel Broking

Infosys Ltd has appointed Mr. B. G. Srinivas and Mr. U. B. Pravin Rao as Presidents of the Company, reporting to Mr. S. D. Shibulal, Chief Executive Officer & Managing Director. These appointments are effective immediately. The business portfolios will be realigned under the two Presidents as set forth below. In addition, Mr. B. G. Srinivas will focus on global markets and Mr. U. B. Pravin Rao will focus on global delivery and service innovation. Financial services, Insurance, Manufacturing, Engineering Services, Energy & Communications, Infosys Public Services, Infosys Lodestone, Strategic Global Sourcing, Marketing and Alliances will report to Mr. B. G. Srinivas. Retail, Consumer Packaged Goods and Logistics, Life Sciences, Resources & Utilities, Services, Growth Markets, Cloud & Mobility, Quality & Productivity and Infosys Leadership Institute will report to Mr. U. B. Pravin Rao. In view of these changes, the Executive Council, as a forum, will cease to exist with effect from April 1, 2014.

This is a clear indication that they are being groomed for the CEO's post. This suggests that apart from more centralisation of power with these two leaders, the company is not looking at talent from outside the organisation for the senior management attrition that Infosys has been witnessing of late. But this can be seen as confidence in their abilities and is a healthy sign. Though CEO Shibulal's term ends only in 2015, the search for the next chief executive is a long-drawn-out process. We currently maintain our neutral rating on the stock.

Source : Equity Bulls

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