The next wave @ Infosys

In the last thirty years since its inception, Infosys has established itself as the most respected IT company not only in India but also across the world for many reasons, primarily on the operational front, the fine balance of interest among employees, customers, and investors has always been their priority, furthermore the transparency in corporate governance is so exemplary that very few company across the world can dare to tread this path. From a seed capital of $250 to an annual turnover $6.2 billion IT behemoth, and from seven founding members to 135000 employees, in just 30 years, are an unprecedented business record that hardly any company can claim. In the post-independent India, many companies have formed and have displayed extremely alluring balance sheets, but when it comes to corporate governance, business ethics, integrity, empathy for employees, customers, and investors, and CSR initiatives, no one can ever match the height that Infosys has achieved.

And on April 30, 2011, Infosys has again created another history by inducting a non-founding board member KV Kamath, a veteran banker famous for his business transformation strategy at ICICI bank, to its highest post, the chairman of the board. The decision is obviously strategic as to why Kamath was chosen over Kris Gopalakrishnan although the latter has been promoted to co-chairman from the CEO. And simultaneously SD Shibulal, a founding member who is the current COO has also been promoted to CEO and MD, a position that now will bring in more challenges given the transformation Infosys is eying for. Over and above NR Narayana Murthy will remain as the chairman emeritus and the chief mentor, a position that no one can ever serve better than him.

Infosys at this point of time is on a crossroad. The IT back office operation which was the major revenue generator is now waning. Under these circumstances Infosys is aggressively looking forward to expand its consultancy business. Despite the fact that Kamath is not from IT industry, his extraordinary skills in corporate governance, business transformation through technology, and innovative business modeling will be of immense help for Infosys to mark a distinct position in IT consulting business like its key competitors such as Accenture and IBM. Being a banker for over four decades, Kamath has garnered exclusive business relations with almost all sectors, and this goodwill could work as miracle while acquiring new businesses in consultancy front. Infosys, for sure, is all set to ride on the new wave of transformation.

All the best Infosys for your continued exemplary service not only to your valued customers across the globe but also to millions of Indians on many fronts. May your mission for excellence long live.

A huge lesson for corporates

A lower court in Delhi denied bail to five corporate honchos involved in 2G scam. It's definitely a strong blow to corporates, but on the contrary it's certainly life-time lesson for those big-time corporate executives who always believed that “all is well if end is well”, which is a partial truth. To ensure a successful ending, people choose various means, and the key differentiator of success lies in the means chosen, not the end achieved, and this is quite evident from today's court verdict.

In corporates, smart executives often believe that they can influence the policy of this nation for the benefits of their company and forget for a moment that a business run ethically has a longer sustainability. Quick bucks, instant success and false bravado delude them to cross the wrong side of the fence and then they shun the primary principles of professionalism. A thorough professional always emphasizes on the principles and practices adhered during execution, leading to a successful mission. However, in today's world where everything is available instantly, some corporate houses believe in the fact that faster market turn-around time is more critical than anything else. And this thought process trickles down in the hierarchy affecting the collective thinking channel of the organization.

Now it's the learning time for those high-flying professionals who believe that everything is fair in business is just another myth and fundamentally wrong. What's already in practice that's yielding results doesn't necessarily mean full-proof and one should delve deeper to find out whether a popular perception or theory can withstand the litmus of ethical test. The yesteryear's recession in the USA is a classic instance of the larger fallout of ethical violation and extreme human greed. And both these evils are serious blockade to the sustainability of an organization.

And equally it's a primary task for B-schools to concentrate more on the business ethics and business sustainability. Apart from engaging in the critical functional skill development for students, the institutes should never undermine the legality of any practice or method used to achieve a certain business objective. This is a serious drawback in Indian mindset that going through a legal way will kill their business competitiveness and they should engage in policy manoeuvrings and turn the game to their side. There are ways, and more specifically, ethical ways, to achieve a business goals faster, but again it's a matter of continuous propriety that very few people believe in, and they are the real winners in this world of competition – they always succeed with a differentiating tag.