Former SAP technology chief Vishal Sikka will reportedly become the next CEO of Infosys, but the company said speculation is unwarranted.
According to a report from the Economic Times of India, Sikka is "all but certain to be chosen as the new CEO of Infosys." The report cites two sources aware of the company's plan.
The announcement, which comes just ahead of SAP's Sapphire powwow in Orlando, would shed light on Sikka's departure from the enterprise software giant. All signs have been pointing to an external exec becoming the next CEO of Infosys.
Infosys today reiterated that the company's search for its new Chief Executive Officer and Managing Director continues and no decision has been taken in this regard as of date. Any other reports or rumors are merely speculations at this point. Once the search is completed, the company will issue a formal notification on the new appointee.
Infosys has been troubled in recent years and has been recently hit with executive turnover. Meanwhile, Infosys has lost the spotlight in the Indian outsourcing industry relative to rivals like Wipro and Cognizant, which is growing at a rapid clip.
Last week, BG Srinivas, a president and frontrunner to be CEO, said he will resign. IDFC analyst Hitesh Shah said in a research note:
Of the several management level exits at Infosys, we believe the two meaningful ones have been of Ashok Vemuri and BG Srinivas – two leading candidates for the CEO position. The exit of BG clearly signals that we are closer to the decision of a new CEO. We believe, frequent management resignations and any further delay in decision of a new CEO would increase the uncertainty at mid-level management and could potentially impact growth.
For fiscal 2015, currently underway, Infosys is expected to see growth slow down to the single digits. The company recently projected growth of 7 percent to 9 percent for fiscal 2015. Challenges are attrition rates above 20 percent, sales execution and a leadership vacuum that Sikka would reportedly fill.