High-profile exits from IT majors make me happy: Saurabh Srivastava, Co-founder, India Angel Network

Saurabh Srivastava, Co-founder, India Angel Network

The IT industry witnessed a spate of high-profile exits in 2023. Mohit Joshi, who was President at Infosys, joined Tech Mahindra; Ravi Kumar S, also president at Infosys, joined Cognizant as CEO; Wipro’s long-time CFO, Jatin Dalal, joined Cognizant as CFO following the departure of the firm’s COO Sanjeev Singh (for CMS), and of several senior vice presidents.

Asked about the significance of these developments, Saurabh Srivastava, former Nasscom Chairman and Co-founder of the Indian Angel Network, in an interview with Moneycontrol, said:   “I'm quite happy with all this because it means we are growing up. This is commonplace in America. High-profile execs move around all the time. If it's happening here, it means we are getting somewhere. We are maturing, growing.”

According to estimates by Fitch Ratings, the IT sector’s revenue growth is expected to slow down to 8-10 percent in the current and next fiscal due to weaker economic conditions in the US and Europe, the two largest markets. However, Nasscom projects that the industry can grow at a rate of 11-14 percent and reach a value of $350 bn by 2026.

“When high-profile people quit, they do it because 10 other jobs are waiting for them. If people don't quit, it's often because there are no jobs,’’ explained Srivastava.

``So, a CFO, CEO, CXO quitting is a good signal. That means there are other jobs around. It means we have a vibrant ecosystem. It's not that people are always happy with the company they are in. They can have differences, but if there are not enough options, they will not quit,” Srivastava added.

However, there is a caveat, said Srivastava, who has been at the forefront of India’s IT revolution — if a lot of top talent leaves a particular company, then clearly it is a management issue.

“The company has to ask, why are these people leaving?” he added.

The full interview with Srivastava, where he shares his outlook for the IT sector, senior-level exits, the future of jobs, and more, coming shortly.