Ashok Vemuri, the head of Infosys’ North American operations and a member of its board, will join iGate as its new chief executive officer.
The new development will be a big blow to India’s second-largest software company. Infosys earlier reported 4 percent rise in first quarter net profit at Rs 2,374 crore. Its consolidated revenue in April-June quarter gained 17 percent to Rs 11,267 crore.
Vemuri is considered as the next CEO of Infosys which is facing a series of exodus from its top management.
Earlier, iGate sacked Phaneesh Murthy as CEO in May for not disclosing a sexual relationship with a colleague. Currently, the case is in court.
iGate earlier hired Russell Reynolds Associates, a headhunting firm, to help iGate find a new CEO, Economic Times reported. ( iGate signs special termination deal with ousted CEO Phaneesh Murthy before sacking )
On Tuesday, Infosys announced the departure of Vemuri.
NR Narayana Murthy, the new chairman of Infosys, described Vemuri, 45, as an important player in the growth of the company. Vemuri, who has been with Infosys for a decade and a half, did not consult him before taking a decision to resign, Murthy said in an email.
Vemuri felt that his chances of becoming the new CEO of Infosys is 33 percent only and it would take 18-20 months. Vemuri indicated that he would join as CEO of a small company than Infosys. But he did not reveal that the new place would be iGate.
Phaneesh Murthy’s exit never impacted iGate and its revenue growth. iGATE earlier said its second quarter revenue rose 6 percent to $283.3 million. Its net income increased 136 percent to $30 million in Q2, 2013. iGate, whose earlier CEO Phaneesh Murthy stepped down due to allegations, said gross margin was 37.9 percent against 37.4 percent in the corresponding quarter of 2012.
Along with Vemuri, Europe head B G Srinivas and India business head V Balakrishnan have been regarded as the internal candidates most likely to succeed SD Shibulal as CEO of the $7-billion (Rs 45,000 crore) company in 2015.
At Infosys, Vemuri will be replaced as head the manufacturing vertical by his deputy Sanjay Jolona.