Leadership changes to be in company's best interest: Murthy

Faced with a spate of senior-level exits, Infosys co-founder N R Narayana Murthy has written to employees to reassure them that the "leadership changes" will be in the "best interest" of the company.

The letter comes in the midst of an exodus of senior-level executives from India's second-largest software services firm, including board members B G Srinivas, V Balakrishnan and Ashok Vemuri.

"...as we embark onto newer and better horizon for our employees and our clients, we will see some transition in leadership. Please rest assured that the leadership changes take into account the best interest of the company as a whole," Murthy, who is Executive Chairman, said in his letter.

Murthy was called back from retirement in June last year to head Infosys, once considered an IT bellwether, and put it back on a high-growth trajectory when peers TCS and HCL Technologies were out-performing the $8 billion entity.

Earlier this week, board member and President Srinivas resigned from the Bangalore-based firm in a surprise move, after a 15-year stint. He will join Hong Kong-based diversified group PCCW as Group MD.

Srinivas was considered to be among the top contenders for the CEO's post when S D Shibulal retires on January 9. With his exit, the chances of an outsider taking over as CEO of Infosys have brightened.

"I hold BG in high esteem and I support his aspirations. His last day with Infosys will be June 10, 2014. BG has been an integral part of our organisation and has played an important role in the Infosys growth story," Murthy said.

He added that in the interim, Shibulal will manage Srinivas' portfolio. Assuring the employees, he said the company remains focused on its mission to perform and grow.

"The Nomination Committee, selection process for the new CEO is progressing as planned. The new CEO will be announced at the conclusion of the process," he said.

He added that while the search is on, he, Shibulal and Executive Vice Chairman S. Gopalakrishnan, along with the Infosys board, will steer the company.

Industry watchers said this is an attempt to assuage employees about the leadership challenges after 10 senior executives quit in the past year.