Bangalore:
Infosys co-founder N R Narayana Murthy has come out of retirement to lead the company he co-founded in 1981. Infosys, India's second largest outsourcer, has been struggling to meet its own high standards over the last few quarters as a severe slowdown in the global economy hurt the company's business.
Mr Murthy, who served as Infosys chief executive from 1981 to 2002, and was the company's chairman from 2002 to 2011, has been appointed as executive chairman with immediate effect. During his five year term, Mr Murthy would draw a token compensation of Rs 1 per year.
A press release from Infosys quoted Mr Murthy as saying that the calling was "sudden, unexpected, and most unusual". He added that he would "do my best to add value to the company in this challenging situation."
He also said, "Infosys is my middle child. Therefore, I have put aside my plans-in-progress and accepted this responsibility. I am grateful to Mr. K V Kamath - the Chairman, the Board, and every Infoscion for giving me this opportunity."
Mr Murthy's son, Rohan, will be joining the firm as his father's executive assistant. A Ph.D. in Computer Science from Harvard University, Rohan has requested that he should also be paid only a token compensation of Rs 1 per year.
K V Kamath, the Chairman of the Board, said in the press release that the Board has taken the decision keeping in mind the challenges that the company is facing and in the interest of all stakeholders.
"Murthy's entrepreneurial and leadership record and the long experience he has had as a technology pioneer makes him eminently qualified to lead the company and provide strategic direction at this point in time," he added.
Mr Kamath would step down as Chairman of the Board later today and take up the position of Lead Independent Director.
Infosys slipped to the third position among India's biggest IT firms by sales earlier this week, according to a report published by global consulting firm Gartner.