Top-level exits at Infosys do not impact long-term growth: Experts

Mohit Joshi has joined Tech Mahindra as its CEO and MD. Experts have said that the development is consequential given the macroeconomic circumstances

Two senior-level officials have left Infosys in the last six months, triggering apprehensions about the consequences of the development. A report in The Economic Times (ET) quoted industry experts as saying that the exits are only a "short term" risk and do not impact the company's long-term growth trajectory. However, the resignation of Infosys President Mohit Joshi may affect the company's ability to tap large deals in the short term.

Mohit Joshi has joined Tech Mahindra as its CEO and MD. Experts have said that the development is significant given the macroeconomic circumstances.

Additionally, Infosys' COO and President, Ravi Kumar S also left the organisation to join Cognizant as its chief executive. These two exits have directly put its two top leaders in the hands of large competitors. Industry experts say that this is a matter of concern. 

A report from brokerage firm Motilal Oswal stated that under the leadership of Mohit Joshi, Infosys' banking, financial services, and insurance verticals have performed well. Under Joshi, it reported a compound annual growth rate (CAGR) of 9 per cent for the period between FY16-22.

ET quoted the brokerage firm as saying, "We view the resignation as a near-term risk for Infosys, given his (Joshi) responsibility as the head of the largest industry unit. Apart from heading various verticals during his stint, Mohit was also responsible for large deals and transformation initiatives."

The report also talked about the risk of rising attrition at the mid-to-senior level over the next few quarters. The report said that given the situation, these employees are likely to switch to Tech Mahindra and Cognizant. However, the report clarified that this will not affect the company's long term business prospects.

On March 13, Tech Mahindra's stock prices went up 7 per cent and hit Rs 1,135. On the other hand, Infosys was beaten down 2 per cent and closed at a price of Rs 1,440.