Haven't tracked Infosys for a while now but the sequence of news flow this morning has been intriguing and fascinating. It has all the ingredients of a great story- a battle of egos, value systems, the past versus the present and its implications on the future.
So what happened? Moneycontrol quoted sources who claim that an Infosys co-founder & a former top executive colluded with the whistleblowers who alleged wrongdoing by the current CEO and CFO . The sources went a step further calling it a "terrorist attack" involving a mastermind
Interestingly, The Economic Times reported last week that the whistleblower mail sent to the Board was also copied to NR Narayana Murthy & former CFO Mohandas Pai, in an apparent attempt to seek outside support. Are the sources referring to this connection or something else?
But more importantly,not only did Infosys react to the Moneycontrol story within hours, condemning it,it also had a statement where its chairman Nandan Nilekani denounced the sources. He said the speculations were "appalling" and conveyed his deep regard for his other co-founders
It is very unusual for Nilekani to react so instantaneously, publicly backing his co-founders. I don't think he issued a statement when the previous board openly attacked Murthy and blamed him for the company's woes.
Following the statement,Nilekani practically gave the current CEO under lens, Salil Parekh, a clean chit in a meeting with equity analysts. He highlighted his contributions since he took charge and asserted,"Even God can't change Infosys numbers."
So what gives? One theory is Nilekani is buying peace with his co-founders and doesn't want this to escalate.
Important to mention that Murthy, and former CFOs -Pai & V Bala have maintained a radio silence so far on the whistleblower letter compared to the Sikka period when they were openly critical. Other co-founders like Kris, Shibu have never been vocal on Infosys matters.
But there are also those who believe that an unusually reactive and apparently prepared Nilekani is also sending out a message through the story and the swift condemnation. The message that he is aware of various machinations and that he will give as good as he gets.
What next? NRN Murthy will be present at the Infosys Science Foundation event in Bengaluru tomo. So will Nilekani. NRN will either continue to remain silent on Infy related issues or publicly back Nandan, reiterating his trust in him as chairman.
Also important to remember the whistleblowers have submitted evidence to the SEC but not to company. The SEC investigation outcome will be crucial to determine if Nilekani's faith in Salil Parekh has been vindicated.
