Rebuilding Infosys will take 3 years: Narayana Murthy

NEW DELHI: Promising to dedicate himself to the task at hand, NR Narayana Murthy, executive chairman of Infosys said that the company has overcome tougher and bigger challenges before. At the company's AGM, Murthy said that his calling was 'sudden, unexpected and most unusual.' 

Stating that during last 2 years focus on core business was blurred, Murthy emphasised the need to focus on employees and take quick and firm decisions. Murthy said that the task of rebuilding a desirable Infosys will take at least 36 months.

"We need to exceed expectations of customers. We are optimistic," he said. Murthy said that he felt nice to be back at Infosys after missing the 2012 AGM.

NR Narayana Murthy has made his first significant move upon returning to Infosys by effecting an unexpected round of wage increases for the company's 1.5 lakh employees. By doing so, analysts said, the Infosys chairman is trying to kill several birds with one stone, displaying tactical finesse that has earned him a reputation as one of India's canniest entrepreneurs.

Earlier this week, India's second-largest software exporter Infosys announced that it will increase the fixed component of salaries, helping reduce uncertainty for employees by giving them a higher guaranteed pay.

At senior levels, the variable component was reduced up to 15 percentage points and by 7 percentage points at junior levels. The new compensation structure will be effective July 1, and coincide with the salary increments that were announced on Thursday.

Infosys had announced average wage increments of 8% for employees in India and 3% for onsite employees.

"We announced a reduction in variability so that employees can look forward to a larger share of their salary being guaranteed salary," an Infosys spokeswoman told ET.

Murthy, 66, retired Infosys in 2011 but returned on June 1 after halting performances for two years by a company that had earned a reputation as the industry's leader for both growth and profitability. Infosys has guided for revenue growth of 6-10% for fiscal 2014, compared with the 12-14% prognostication by industry grouping Nasscom.

He will have by his side as executive assistant son Rohan, 30, an alumnus of Harvard and Cornell Universities, as well as the Massachusetts Institute of Technology. Soon after the news of the pay raise, Murthy spoke at a packed 'town hall',he told employees that his son's role would be circumscribed, addressing criticism several observers.