BENGALURU: Seven chief financial officers of India's top IT companies have moved in the past 24 months, shedding light on the market in this sector.
The most recent appointment was Vinit Teredesai, who joined Persistent Systems Ltd from LTI Mindtree, where he had served as CFO since its inception in late 2022. Earlier, some of India's largest IT companies, including Infosys Ltd, Cognizant Technology Solutions Corp, Wipro Ltd and Tech Mahindra, saw CFO departures. Ltd, LTIMindtree Ltd, and his Coforge Ltd.
Two of the seven CFOs moved on to new IT companies, and the others left or left the company to pursue other professional and personal opportunities.
Most of the exits have occurred in four of India's top six IT companies, which reported total revenue of $40 billion in FY24, which is 16% of India's $250 billion IT industry. corresponds to
Five of the seven CFOs appointed were internal candidates, indicating the trust of top management.
After Jatin Dalal leaves Wipro after more than a decade to join Cognizant, Wipro will hand over the keys to Aparna Iyer, who has been with the company for 20 years, and will hire from outside the company to get the company back on a growth track. This went against the strategy of the former CEO of Delaport.
Notably, with the exception of Cognizant, where Dalal joined almost a year after S. Ravi Kumar took over as CEO, not all CFO appointments immediately followed CEO appointments at their respective companies. do not have. Dalal joined Cognizant from Wipro in December 2023 as CFO.
Shriram Subramanian, founder of proxy advisory firm InGovern Research Services, said companies that need an entirely new culture are having CEOs bring in their own candidates as CFOs.
“Many of the top IT services companies tend to be cash-rich, so the CFO's role extends beyond accounting and tax management to treasury, cross-border financial planning, and cash management,” Subramanian said. added.
Not all analysts held the same view.
“All of these companies are cash-rich companies with no real need to raise additional capital, so a change in CFO will not change anything for the company. Not just CFOs, but IT companies. So when there is a change in management, most of the top people change. Many of them leave because they are probably offered a better package,” said Omkar Tanksale, research analyst at Axis Securities. said.
“As IT companies are hiring fewer employees compared to previous years, top executives are looking to hire CXOs who better fit their needs,” Tanksale added.
India's top four IT companies have seen a cumulative decline of more than 60,000 employees in FY24 on an annual basis.
Cognizant, Wipro, Tech Mahindra, LTIMindtree, Persistent Systems, and Coforge did not respond to email inquiries, and Infosys declined to comment.
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Published: May 20, 2024, 6:05 AM IST
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