The Great Resignation : Continued Wave of Leadership Reshuffling  in IT Companies

The IT industry is in the midst of a major leadership shakeup, with a number of top executives leaving their positions at large companies. This is happening even as attrition rates in the industry remain relatively low.

In the past seven months, nine top executives from Infosys, HCLTech, and Wipro have left to become CEOs of other IT companies or smaller Indian rivals. This includes former Infosys presidents Ravi Kumar and Mohit Joshi, who have both taken on new leadership roles at Cognizant and Tech Mahindra, respectively.

The reasons for this leadership churn are complex, but experts say that it is likely due to a number of factors, including:

• The changing nature of the IT industry, which is increasingly focused on digital transformation and cloud computing.

• The need for fresh leadership to take on new challenges and opportunities.

• The rising competition for talent in the IT industry, which is making it difficult for companies to retain top employees.

The leadership changes are having a significant impact on the IT industry. In some cases, new CEOs are bringing in new strategies and approaches that are shaking up the status quo. In other cases, the departures of top executives are creating uncertainty and instability.

It remains to be seen how the leadership churn will ultimately impact the IT industry. However, it is clear that the industry is undergoing a period of significant change, and the leadership changes are a reflection of that change.

The Ripple Effect of Leadership Changes:

The reshuffling of top-level executives is evident as former leaders from renowned IT companies take on prominent roles in both global IT giants and smaller Indian competitors. The appointment of Charles Salameh as the CEO of Canada-based Sangoma Technologies Corporation, soon after his tenure at Infosys, is a case in point. This phenomenon highlights the industry's dynamism and the opportunities for seasoned leaders.

Prominent Executives Who Transitioned:

Notable industry figures, including the ex-CEO of TCS, Rajesh Gopinathan, and former Infosys presidents Ravi Kumar and Mohit Joshi, have all left their positions for new roles. While Ravi Kumar assumed the role of CEO at Cognizant, Mohit Joshi became the CEO designate at Tech Mahindra. Vishal Salvi, formerly the Chief Information Strategy Officer at Infosys, recently joined cybersecurity firm Quickheal as the new CEO.

Change at the Helm Across the Industry:

Several IT companies, such as Cyient Services, Xoriant, Encora, R Systems, Citius Tech, and eClerx, have witnessed transitions in their CEO positions this year. Interestingly, many of the new CEOs have made the move from established IT giants like Infosys, Wipro, HCLTech, and Tech Mahindra to these smaller firms, adding fresh perspectives to their leadership.

Paradox of Attrition and Leadership Shuffling:

Despite the decline in overall attrition rates, the industry's top echelons are experiencing a significant rearrangement. As per Jefferies, attrition among the top five companies has decreased from 23% to 13% in the June quarter of FY24.

This contradicts the current wave of leadership changes, indicating that senior executives are seeking broader opportunities and new challenges.

Driving Forces of Change:

The changing landscape of the IT industry, transitioning from legacy and digital modernization to a digital run phase, is prompting organizations to reconsider their strategies. To navigate this transformation, many companies are seeking fresh and innovative leadership. Boards are actively appointing new CEOs who can spearhead these changes and steer companies towards success.

Impact on Organizational Dynamics:

The appointment of new CEOs is often accompanied by organizational changes. For instance, Cognizant recently appointed six women Senior Vice Presidents, signaling its commitment to diversity and inclusion. Similarly, TCS introduced a structural shift by organizing its business groups based on industry sectors and geographies under the new CEO, K Krithivasan.

Here are some relevant and latest facts for the above news article:

• In the past seven months, nine top executives from Infosys, HCLTech, and Wipro have left to become CEOs of other IT companies or smaller Indian rivals.

• This includes former Infosys presidents Ravi Kumar and Mohit Joshi, who have both taken on new leadership roles at Cognizant and Tech Mahindra, respectively.

• The average attrition for the top five companies in the IT industry has fallen to 13% in June quarter of FY24 from 23% a year earlier.

• The IT industry is at an inflection point as it moves away from the legacy + digital modernization stage to a digital run phase.

• This new reality is requiring firms to rethink their go to market and organizational approaches and in the case of many of these firms the boards are turning to new and fresh leadership to affect these changes.

Conclusion:

The IT industry's journey is marked by a remarkable blend of stability in terms of low attrition and dynamism through significant leadership changes. As the sector advances into a digital run phase, new leaders are emerging to redefine strategies, spearhead innovation, and steer companies towards future growth. The concurrent dynamics of attrition and leadership shuffling signify an industry poised for transformative growth.