Infosys founder NR Narayana Murthy has admitted that he made a mistake by not allowing the next generation of promoter-founder families to actively participate in the leadership of the Bengaluru-based tech giant. Murthy acknowledged that he was depriving the organization of legitimate talent and expressed regret for his previous stance. He clarified that his reluctance at that time stemmed from concerns about undeserving candidates being appointed to key positions, emphasizing the importance of ensuring the organization’s future strength.
Nandan Nilekani, the non-executive chairman, also acknowledged that there should be no reverse discrimination against the next generation. He emphasized that candidates should be selected based on competence, regardless of nationality or heritage, but stressed the need for a proper organizational maturation process before assigning significant responsibilities.
Regarding succession planning, Nilekani highlighted that the most significant concern on his mind is ensuring a robust plan for Infosys, including identifying a replacement for himself. He expressed the intention to hand over the chairmanship role to a non-promoter when he exits and emphasized the importance of implementing Murthy’s vision for leadership structure, people, and values.
Nilekani stated that he will remain chairman for as long as required but indicated that he is not aiming to stay until the 50th anniversary of the company. The focus for Infosys will be on maintaining relevance, responsiveness, and resilience to remain a dominant player in the industry. The co-founder expressed enthusiasm about the opportunities presented by Infosys and emphasized the company’s commitment to digital transformation.
Infosys, founded in 1981, played a pioneering role in the Indian IT industry, listing on Indian bourses in 1993 and becoming the first to list on the Nasdaq in 1999. Despite crossing $16.3 billion in revenue for the fiscal year ending in March, the company’s founders had made a pact to exclude family members as successors in the company’s management. Murthy, who served as CEO for approximately 20 years, returned to the executive chairman role in 2013 to lead the company during a period of underperformance.
