Vishak Sikka, the first non-founder CEO of Infosys resigns under pressure and constant challenging by Narayan Murthy, one of the founders of Infosys and a two time past CEO. Under his short tenure of less than three years sales and profits both increased. So what was the problem? Really simple:
1) Narayana Murthy’s continuous assault was one main reason, and
2) continuous noise over the same things, malicious attacks and drumbeats of distractions and on and on…
Infosys was in the midst of a structural transformation… all this takes times, and CEOs could make mistakes. Founders or those with significant shareholding should stop interfering in their former companies and move on. That is usually a difficult thing for founders to do and even harder for Indians to let go, whether inside or outside the home… this is limiting our achieving world class…
- 22 Aug 2017
The Indian tech sector and IT industry is facing multiple negative growth trends – a general slowdown in growth from nearly 10% to around 5%+, the recent US visa restrictions and change from the typical IT services to a digital platform model. Almost every established Indian based IT company has started making sizable cuts in headcount of at least 10% starting with the more senior / experienced staff – VPs, Directors, Program Managers, but the cuts are expected to hit less experienced employees. You name the company – Wipro, Infosys, Cognizant, CapGemini, TCS and on and on. Some say the cuts could be comparable to the great recession of 2008-2010? One possible saving grace is the fast growing digitization been driven by Indian central and state governments.
Source: Times of India
- 10 May 2017
The deliberate demonetization of 85%+ of money in November 2016 forced many changes. Initially business activity slowed, but then given jugaad – Indians started switching to mobile money (even without bank accounts)- such as the 10 apps – PayTm, Freecharge, Mobikwik, and others, all Indian companies. Even for street vendors – bhel puri walla, to fish walla – switching was fairly even for those with less education. The volume of mobile money activity is small, the size of each transaction is small, but are growing at more than 100%, while credit cards even after decades there are only 30 million cards in use. Mobile money could be nearly 500 million with Paytm alone having have this number. Smart phones, availability of one of the cheapest smart phones in India, demonetization and big RBI and government support is driving a revolution in the mobile wallet space. As our Prime Minister has said, the smartphone could soon become your bank. India would soon be a world leader in this space…
Source: Market Watch
- 4 May 2017
US President as part of the “Buy American, Hire American” executive order, now seeks to put major restrictions on Indian technology sub-contractors – Infosys, TCS, Wipro, Cognizant normal business. The US order is in USA’s best interests. Indian companies – including IT companies should look at this as an opportunity and change their business models and business practices to succeed. Knowledgeable people would say our companies are doing business the same easy business of hiring thousands of programmers to do simple / basic coding work and project management since Y2K – life was comfortable with multi-year contracts. Change is a fact of life and complaining and sulking wont do. This is business and our IT companies which are amongst the richest need to think strategically and take calculated risks in this new era to succeed.
- 24 Apr 2017
Snapchat being the latest example – companies from outside India seem to be at ease in making fun of, or abusing, or call abusing or call it what you want of Indians. We can get upset or create a lot of media and social media storm as it happening – all this hype will be around for at least a few days, or we could really bring these companies to their knees and even make them bankrupt by stop using their products and their Apps. Till recently these didn’t exist so NOT using them should not be an issue. So can we take the pledge to really teach these companies a lesson or just want some media sensation – that is for us to choose?
Source: Economic Times
- 17 Apr 2017
Amazon, the US based eCommerce powerhouse has gained massive scale and share in only 3 years at the expense of Flipkart, Snapdeal and other smaller Indian eCommerce companies. Over one year ago, Amazon’s share by gross market value (gmv) was 15% while Flipkart’s share was around 45%, but in the most recent July quarter, Amazons’s share has grown to ~32% while Flipkart’s has fallen to ~40%. Not just that, Amazon carries 65 million products to Flipkart’s 45 million. Amazon has a strategy for vendors to export and buyers to import products (which could be in violation of government rules) and Flipkart has none. Amazon’s CEO said that “Amazon India has surpassed our most ambitious planned milestones.” Of course, almost all eCommerce companies are losing money so access to financial is needed, Indian companies are cash starved. So it is scary if Indian companies would lose leadership, domination and overtime name recognition in this growing segment to foreign companies.
- 21 Oct 2016
India has told USA that the H1B visa fee hike is really targeted at Indian companies and hence is discriminatory. Recently, USA has stated imposing a special fee of $4,000 on H1B visas and $4,500 on L-1 visas – both visa types are popular among Indian IT companies — to fund unrelated and biometric tracking system.
Source: IBN Live
- 16 Apr 2016
Economic growth is slowing and now Indian companies are waking up to too much debt and having a presence even if not a leading one in too many unrelated business segments. For example, Anil Ambani’s Reliance Group, which has over Rs 76,000 crore in debt between telecom and infrastructure, GMR Infrastructure has over Rs 43,000 crore and Jaypee group has around Rs 75,000 crore. They and many others – causing them to slim down and all equity sales.
- 15 Jan 2016