Why Vishal Sikka's non-IT service background isn't a worry

Written By Unknown on Kamis, 12 Juni 2014 | 23.25

R Chandrashekhar, president, NASSCOM feels that integrating products, innovation and services is a necessity today, so inexperience of IT services is unlikely to affect Sikka's effectiveness.

Product companies are becoming a hallmark of Indian industry.

R Chandrashekhar

President

Nasscom

Infosys  has ended months of uncertainty and former SAP executive board member Vishal Sikka will succeed CEO SD Shibulal as MD and CEO. The 47-year old will be the company's first non-founding CEO, and will take charge on the first of August . While he will be based in California, Sikka will also be inducted as a wholetime director on the Infosys board on Saturday.

Sharing views on Sikka's appointment with CNBC-TV18, Arup Roy, Research Analyst, Gartner expressed concerns if Sikka would manage to adapt quickly to Infosys IT services focus since he has experience in it products and not it services.

With over 20 years of experience, Sikka brings with him the entrepreneurial experience of Silicon Valley and a career steeped in product innovation and platform design. After graduating in 1996, Sikka had a brief stint in Xerox's research labs and moved to the world of entrepreneurship.

In 2002, Sikka was hired by SAP to head the advanced technology group of the firm responsible for strategic innovative projects. In May 2014, Sikka resigned from SAP citing 'personal reasons'. He was then the executive board member for products and innovation.

However, R Chandrashekhar, president, NASSCOM feels that integrating products, innovation and services is a necessity today, so inexperience of IT services is unlikely to affect Sikka's effectiveness.     

Seconding Chandrashekhar, former NASSCOM president Som Mittal added that he is not concerned about Sikka not having IT services background.

Infosys stock price

On June 03, 2014, Infosys closed at Rs 3015.40, up Rs 21.90, or 0.73 percent. The 52-week high of the share was Rs 3847.20 and the 52-week low was Rs 2343.00.


The company's trailing 12-month (TTM) EPS was at Rs 177.52 per share as per the quarter ended March 2014. The stock's price-to-earnings (P/E) ratio was 16.99. The latest book value of the company is Rs 733.03 per share. At current value, the price-to-book value of the company is 4.11.


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