The pressure seems to have been built on the enterprise while operating in a Volatile, Uncertain, Complex and Ambiguous (VUCA) environment. This will certainly have to be done while keeping in mind that the core of Infosys is kept intact which in itself seems to be jeopardised at the moment.)IANSamitk/vmPost Source: Ians feed.

To put this into perspective, we must look at the trajectories of growth, impact the firm has had on the global industry et al. This is where the present team of Vishal Sikka, Ravi Venkatesan et al have been working quite hard and making admirable strides on redefining the business model.The resignation has had its first casualty by Automotive Brake Hose Manufacturers way of wiping off the value of Infosys stock on the bourses. The Infosys saga can as well be seen through the lens of conflict of interest and control. The archaic business model of Infosys, driven by the idea of scale and labor arbitrage has come under severe strain. We must keep in mind that all organisations need to change, evolve their business model and adapt to the new realities. This discussion becomes important as Murthy cannot be seen as an activist shareholder who is at loggerheads with the management.The episode leads us to look deeply at the issues of corporate control in the country.

Todays business environment is bombarded with ideas countering the notion of globalisation and the negative impact of free trade. The enterprises to compare here are Microsoft and Infosys who effectively started at the same time and have had trajectories of growth that are significantly different. The episode rakes up significant issues about corporate governance and transparency, the agency problem (precisely the question of control between shareholders and professional management), important issues about the strategy of Infosys and the pressure to perform in a volatile global environment 1. He can be contacted at [emailprotected] and tweets @kautiliya. The impact was close to Rs 22,000 for Infosys and Rs 700 crore of mark down for Murthys stock. It cannot be ignored that Murthy is the co-founder and has had a great stake in building the enterprise though the action of making the grievance public seems to have had a counterproductive effect. Business Model.

The views expressed are personal. To say the least, a conflict of this nature will not only undermine but has the potential to ruin the enterprise. To top it all, the pressure has been further created by the current US administrations views on outsourcing and immigration.