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Infosys - Changes At The Top

Infosys must shed its aversion to acquisitions, change its premium pricing strategy and make better headway in higher-end businesses like consulting to compete with global rivals IBM and Accenture Tata Consultancy Services. Infosys is overly focused on service delivery and not enough on sales; that it is slavish to preserving margins at the expense of winning new business; that its core service offerings differ little from those of its competitors.

Smaller rivals Cognizant, HCL Technologies, and iGate are winning market share partly due to Infosys' reluctance to lower prices in a tough market.

TV Mohandas Pai, who was a board member and head of human resources and had also been chief financial officer during a decade-and-a-half stint at Infosys, had been expected to be the first non-founder CEO, but quit unexpectedly a year ago when the lower-profile Shibulal got the top job.

Infosys investors are running out of patience with the lack of a clear plan for its $4 billion in cash. It has shied away from acquisitions that could help it enter new markets and has not realised a long-stated plan to boost its presence in Europe by buying a company.

Despite the problems, Infosys still has believers.