The Root Cause Of The Conflict At Infosys

Image result for infosys sikka vs murthy

Several articles have now reported the conflict between Infosys’ founders (mainly Narayan Murthy) and its current leadership under Vishal Sikka.

Livemint has reported the conflict quite well, and you may want to read up here (feel free to follow the other links given in the article).

One of these articles have identified the root cause of this conflict to be a personality clash between Sikka and Murthy. See here.

Growtist agrees with the above diagnosis, but in this post a question that we pose is: Why do these 2 people have a personality clash?

Well, the answer lies in their core values or ideologies. Murthy used to be a socialist who later–when he became an entrepreneur–turned into a compassionate capitalist. But, Sikka is a typical American-style market-oriented capitalist.

Thus, these 2 guys have different world-views. And this fundamental difference is driving all the symptoms (high compensation, use of private jet, high severance package, aggressive acquisitions, corporate governance issues, etc.).