Indian IT firms should focus on proactive problem recognition and solution mindset: Narayana Murthy

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26 Aug, 2025 12:21

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Infosys co-founder N R Narayana Murthy on Monday said Indian IT firms must move from reactive problem solving to having a proactive problem recognition and solution mindset which will help increase its per capita revenue productivity.

Speaking at an AIMA event, Murthy said Indian IT companies will continue to grow anywhere between 7 to 10 percent with operating margins being between 15 and 20 percent.

He cited the example of customer surveys conducted during his tenure at Infosys, where customers said that while the IT firm was providing great service, they expected the company to play a proactive role in helping resolve strategic issues.

"I think if the Indian IT industry moves from being reactive problem solvers to proactive problem definers and solution providers, then our per capita revenue productivity will improve. We will become much better known and the growth will be spectacular,” he said.

Asked about his views on the work-from-home mode being adopted amid the COVID-19 pandemic, Murthy said he isn’t a "great fan” of WFH.

"I believe the office is the place to work, home is the place to spend time with your loved ones. Mixing the two is not a good idea on a long-term basis. Yeah, I understand that there is no alternative therefore, we have adapted. But this should be a short-term solution,” he said.

On mergers and acquisitions, Murthy said acquisition strategy should look at complementary strengths.

He explained that if the target company adds value in terms of adding strength in a sector, helps bolster presence in a geography or has an IPR (intellectual property right) that can be leveraged for accelerating growth of services, then there is merit in such a transaction.

"I am a great believer in bottomline. I believe in topline, but that topline has to come with a very good bottomline, because I used to say that our strategy has been to do whatever is necessary to create sustained differentiation in the marketplace to obtain industry leading margins…I am not a great fan of acquiring companies which have low margins,” he added.