A little more than a year in his role as chief executive of Infosys, Salil Parekh is ramping up investments in the digital field, expanding sales footprint and fixing compensation issues to take Infosys to the next level.
In this short time, the 54-year-old industry veteran has made multiple acquisitions, provided the much-needed impetus to the digital business and appointed key executives at various verticals.
And above all, Parekh was able to restore stability at India’s second-largest software services company after the controversial exit of his predecessor, Vishal Sikka, following differences with co-founder NR Narayana Murthy.
In his first interview as CEO with CNBC-TV18’s Shereen Bhan, Parekh talks about Infosys guidance, investment outlook and margin growth.
“First on margins, we are very clear. We are targeting a high margin business. We are never going to sacrifice margins for growth or for anything. For fiscal 2019 we have a guidance 22-24 percent, we will fall well within the guidance. So we are very comfortable that is what we indicated at the end of the last quarter.”
“We are not giving any view on fiscal 2020. So fiscal 2019, we are comfortable with 8.5-9 on constant currency and that is how Q4 was rolled out.”
“There are investments in multiple areas we put in place. The first – we want to build more digital capability, one of the things that we saw was our clients are asking for that.”
“The second is we wanted to make sure that we expand our sales footprint. So that simply increasing the number of go-to-market individuals we have in the market, we gave a statistic in Q3, we are 5 percent higher than the previous year and that is something we have done all through the year and that will continue into Q4 as well.”
“The third – we want to make sure that some of the things we have done on compensation in the previous years we correct. We were doing compensation increases on different cycles, staggering them, we are now getting back to a system, which is consistent, annual and well understood by our people.
“And the fourth area is we are building out on localisation, localisation implies building new offices outside of India, building campuses, hiring locally and those are the investments”.
“Those are investments we are making so that we can build an Infosys, which is more and more relevant for our clients in the future.”
Source: CNBC TV 18