Murthy and Son @ Infosys: what’s the big deal?

Everything that the Indian offshoring giant Infosys does comes under intense scrutiny, especially from Indian media that has been enamored with the hi-tech sector for long. Not surprisingly, the return of Infosys’ founder and godfather of Indian offshoring lead to intense analysis in media. Comparisons include to that of Steve Jobs’ return to Apple and Michael Dell’s effort to take charge of Dell’s strategy. If there was any doubt about the move by Infosys to seek the return of its founder, it was reassured by the stock market (re: Infosys Jumps Most Since January as Billionaire MurthyReturns)

Leadership changes are bound to follow major management announcements. Not surprisingly, there has been a barrage of announcements, among which has been an interesting move by Mr. Murthy: recruiting his son to be an executive assistant to the Executive Chairman. Following that announcement are reports of Murthy junior being appointed “Vice-president” at Infosys.

Analysts and the media are torn between two school of thoughts here

• The sour grape school of thought. The thinking goes something like this: most of us have to work extra hard to survive and thrive in a crowded world of  business while a select few who happen to be born into a family with the right last name are automatically admitted to the club.
• Acceptance school of thought. Acceptance of the reality of dynasties in business and politics. The last name Bush (Wikipedia) can get you elected as a President of America, or governor of Florida just like the Gandhi name in India. Same goes for successful business dynasties scions of which have not only proudly carried the family name but also managed to outshine their fathers and forefathers.

Back when I worked for Infosys, the grandiose sounding title of VP was something the company didn't dole out to employees lightly. This said, there were scores of “Associate” VPs, many of them senior engagement and sales managers, consulting partners who were given the title. This was done generally to signal clients and others that the title holder was empowered to negotiate a proposal or sign a SoW on the company’s behalf.

I continue to closely watch the company, wearing my shareholder hat (I still happen to hold a few shares that vested from the options I received when I joined INFY nearly a decade ago). All I see here is a storm in the teacup.  The stock price has bounced nicely since Mr. NR Murthy’s return. The news of Murthy Junior coming aboard and debate over his title has barely caused the stock to budge. There is another key fact to bear in mind: The Murthy family holds nearly a 4.5% stake in the company. And Rohan Murty, himself is a significant share holder with 7,949,782 shares (1.38% stake) has a skin in the game.

As a significant individual shareholder, Rohan's voice of course counts. And if he wants to be at the forefront and ensure ROI of his investment: Sure, by all means!

Globalizations: Pillsbury Doughboy™ takes on a Desi (South Asian) Avatar in America

This month I have been traveling across cities in Anytown, USA more than my usual quota. It is for an interesting consulting engagement we are doing for a client in Houston that also has offices in Cincinnati, Ohio. While on the road, I try to keep my culinary urges in check, preferring to go for known brands of chains, generally large fast-food brands. I am vegetarian and it is interesting how large chains have at least one or two good entrée for folks just like me. Given my South Asian/Indian heritage, I also like the occasional Desi (Indian) dinner.

After a busy day of meetings I don’t always want to head to a sit-and-eat restaurant I prefer to pick up some Ready-to-eat Indian food at local Indian grocers in Anytown, US. I guess I am not alone: an entire micro industry of Indian Ready to Eat cuisine (both of frozen and pre-packaged variety) has taken off in the past decade catering to both the Indian Diaspora, Non Resident Indians and also busy working-couples in India. Even with the limits on H1, L1 and works visas and Green Cards being issued by American government, sufficient number of Indians, Indian Americans and South Asians seem to be criss-crossing the continents to make the business of Ready to Eat cuisine viable.

What is really interesting about the pervasiveness of Asian/Indian Ready-to-eat food is that global giants like General Mills have taken their uniquely American brands like Pillsbury Doughboy™ east, to India, built market share, and are also "importing" back some local hits. For instance, General Mills in India has been expanding their Pillsbury wheat (Atta) brand into the pre-cooked, ready-to-heat-and-eat rotis and Naans (Indian breads). These brands, including the frozen variety are now being “exported” back to Indian grocery shops across North America and Europe.

While this would make an excellent case-study or white-paper on globalization with a mix of supply-chain management and cross-cultural sensitivities, for now I am content to sample and enjoy the by-product.