Both market analysts and IT industry honchos have welcomed software giant Infosys' move to appoint NR Narayana Murthy as the executive chairman of the board with effect from June 1, 2013.
While Kiran Mazumdar Shaw and Som Mittal have applauded the IT giant's decision, market analysts also see this as an important turning point for Infosys. We take a look at what analysts and IT honchos are saying:
Som Mittal, Nasscom
"At this juncture it will be good for both Infosys and the industry. I welcome Murthy's return to Infosys in executive role."
Stating that the IT industry has undergone significant changes since 2007, Mittal said, "Murthy's return is positive for industry per se." "We can't write off Infosys on basis of past 2 years performance," he added.
Kiran Mazumdar Shaw, Biocon
"This is a very welcome development. Infosys needs a hands-on leadership to manage operations."
Murthy's return to helm is driven from perception of the company recently, Shaw said. He must have carefully thought this, she added.
Ganesh Natrajan, vice chairman, Zensar Tech
"Murthy's return to Infosys is healthy for the industry. I expect Murthy to delineate executive and non-executive roles."
With Murthy's return, Natrajan expects Infosys to do 'extremely well'. "Murthy will take Infosys to a new level of leadership. He can build a new leadership vision in Infosys," he added.
Rostow Ravanan, MindTree
"The biggest challenge for Infosys is to get revenues, growth back. I am sure Murthy has some ideas on this." "He is a leader who has lot of credibilty in the industry. Will have to wait and see how leadership changes shape up, he said.
Bhavin Shah, Equirus Securities
Shah said that Infosys needs to improve materially for the stock to rally. "I don't expect Infosys stock to rally post Murthy's return," he said.
Bhavin Shah acknowledged that Murthy's return is a positive for the company. "Consulting, platform solution businesses need to be improved by Infosys. I expect Murthy to be involved in operations of Infosys," he said.
"We wish Murthy and Infosys the very best. Murthy is an industry icon with a track record."
Sudin Apte, Offshore Insights
According to Apte, the employee moral at Infosys will change with Murthy's return. However, Apte said that he will not change his stand on the company so fast. "I will see the performance of the company first," he said.
Sanjay Dhawan, Leader of Technology, PwC
Dhawan said, "Murthy's return to Infosys will go a long way in helping the company regain lost glory. With this change there could be aggressive growth for Infosys and industry."
"Infosys has been an industry leader, is a fundamentally strong company," Dhawan added.
Ankur Rudra, Ambit Capital
This is a drastic, some might say, welcome move," said Ankur Rudra. Ambit Capital has a "sell" rating on the stock. "Probably, this could be a step towards a new strategic direction and leadership as well."