Infosys Ltd, the second largest Indian IT services firm, has faced disappointing outcomes and decreasing market share in the past few months. In order to reverse the tide, the company has recalled its founder and former chairman N.R. Narayana Murthy to be its executive chairman for the next five years.
Murthy stands to replace current chairman K.V. Kamath, who would become the firm's lead independent director. The current co-chairman S. Gopalakrishnan would become executive vice chairman. CEO S.D. Shibulal retains his position as CEO.
In a statement from Infosys through Kamath, he said, "The board has taken this step in keeping in mind the challenges that the technology industry and the company faces." He also acknowledged the recommendations coming from shareholders to bolster the current leadership group of the company.
For many years, Infosys has exceeded its earnings projections, making it an investor favorite. In the past couple of years, it has struggled to meet that goal as many clients located in the United States and Europe has cut back on their demand while other firms such as Tata Consultancy Services and HCL Technologies have gobbled up their market share.
Murthy has a cut a large figure in the firm, which he endearingly calls his 'middle child.' He was the very first Infosys CEO and Chairman until 2002 when he was replaced as CEO. He kept the office of chairman and 'chief mentor' until he stepped down in 2011.
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