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Parekh’s the only outsider, aside from Vishal Sikka — his predecessor — to land the post. Normally it was only the company’s co-founders or engineers, who were there since its inception, which cycled through the CEO’s office.
Vishal Sikka was also ousted by the company’s founders, led by Narayana Murthy, after similar accusations of misgovernance.
Nandan Nilekani, current Infosys chairman, was brought in to clean up the system at Infosys and Pakekh’s appointment was one part of it.
A graduate of the Indian Institute of Technology (IIT) Bombay, Parekh also holds a degree in Computer Science and Mechanical Engineering from Cornell University.
When Parekh was named CEO, he was given more than $5 billion in cash to make acquisitions. Infosys, at the time, was looking to move from low-margin outsourcing into more profitable verticals like digital services.
And, according to the quarterly reports since, Infosys has increased its margins — but this might only be on paper.
“He directs them (sales team) to make wrong assumptions to show margin,” stated the whistleblower complaint.
It added, “Several billion dollar deals of the last few quarters have nil margin. Please ask auditors to check deal proposals, margin, undisclosed upgrong commitments made and revenue recognition.”
