India's Infosys top executive quits

A top executive of Infosys, tipped as a future chief executive of the outsourcing giant has resigned, the latest in a string of departures since co-founder Narayana Murthy returned to lead the company. Infosys said in a statement posted on its website Saturday that V. Balakrishnan, who headed the business process outsourcing (BPO) division, had quit and would leave the firm at the end of the year. Balakrishnan, who had been seen as a potential chief executive of Infosys, resigned to join other software industry veterans in a venture to support companies in emerging technology areas, media reports said. It marked the eighth high-profile exit the company has seen in the past six months as Infosys undergoes an organisational restructuring, the reports said. Analyst Ankita Somani at Mumbai's Angel Broking told the Economic Times newspaper Balakrishnan's departure would not affect the company at a "business level" but it did indicate "a severe management transition happening in the company". Infosys in June reappointed Murthy to head the company two years after he retired, as it grappled with weak earnings and a falling market share. Balakrishnan is the biggest-name exit from Infosys since his return. Others who have resigned include its global manufacturing head Ashok Vemuri. Balakrishnan dismissed speculation his resignation had anything to do with the return of Murthy as Infosys chief. "Murthy's return is the best thing to have happened to Infosys," he told India's CNBC-TV18. Murthy paid tribute to Balakrishnan, saying it was difficult to imagine the company without his "passion, commitment and intellect". The Bangalore-based company has been seeking to reinvent itself with a strategic overhaul to focus on higher-value software and consulting services instead of labour-intensive outsourcing services. Infosys reported in the quarter to September a lower-than-expected 1.6 percent rise in quarterly net profit to 24.07 billion rupees ($383 million), but raised its full-year revenue outlook.