This article is from the source 'guardian' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at http://www.guardian.co.uk/business/2013/jun/03/infosys-narayana-murthy-back-from-retirement

The article has changed 3 times. There is an RSS feed of changes available.

Version 1 Version 2
Infosys calls founder Narayana Murthy out of retirement Infosys calls founder Narayana Murthy out of retirement
(4 months later)
One of the world's largest outsourcing companies, Infosys, has called its co-founder and former chairman Narayana Murthy out of retirement to head the company again, following the trend for major firms to bring back an old hand in times of trouble.One of the world's largest outsourcing companies, Infosys, has called its co-founder and former chairman Narayana Murthy out of retirement to head the company again, following the trend for major firms to bring back an old hand in times of trouble.
Often dubbed the "Indian Bill Gates", Murthy said over the weekend: "This calling was sudden, unexpected, and most unusual. But then, Infosys is my middle child … I intend to do my best to add value to the company in this challenging situation."Often dubbed the "Indian Bill Gates", Murthy said over the weekend: "This calling was sudden, unexpected, and most unusual. But then, Infosys is my middle child … I intend to do my best to add value to the company in this challenging situation."
Infosys is the latest in a series of companies to recall a founder or former chief executive to turn its fortunes round. Others include Apple, Dell, Starbucks, JC Penney and, most recently, Procter & Gamble, which last month recalled former chairman and chief executive AG Lafley.Infosys is the latest in a series of companies to recall a founder or former chief executive to turn its fortunes round. Others include Apple, Dell, Starbucks, JC Penney and, most recently, Procter & Gamble, which last month recalled former chairman and chief executive AG Lafley.
Infosys has struggled over the past two years as larger clients in the US and Europe cut costs, and rivals, such as Tata Consultancy Services, have eaten into its market share. The company said in April that full-year sales growth would miss analyst expectations by a margin of up to 50%, driving its shares down to their lowest point in a decade.Infosys has struggled over the past two years as larger clients in the US and Europe cut costs, and rivals, such as Tata Consultancy Services, have eaten into its market share. The company said in April that full-year sales growth would miss analyst expectations by a margin of up to 50%, driving its shares down to their lowest point in a decade.
Murthy, who co-founded Infosys in 1981 with $250, was the company's first chief executive, until 2002, and chairman, retaining the latter position and that of "chief mentor" until 2011.Murthy, who co-founded Infosys in 1981 with $250, was the company's first chief executive, until 2002, and chairman, retaining the latter position and that of "chief mentor" until 2011.
Analysts welcomed the 66-year-old's return, which drove the shares up by more than 9% in early trade on Monday. They later dropped back to trade 4% higher on the day.Analysts welcomed the 66-year-old's return, which drove the shares up by more than 9% in early trade on Monday. They later dropped back to trade 4% higher on the day.
Ankur Rudra of Ambit Capital said: "This is a drastic, some might say, welcome move. Probably, this could be a step towards a new strategic direction and leadership as well."Ankur Rudra of Ambit Capital said: "This is a drastic, some might say, welcome move. Probably, this could be a step towards a new strategic direction and leadership as well."
Bringing back a former chief is no guarantee of success, although proponents of the move will likely cite the triumphant return of Steve Jobs to Apple in 1997. At the time, the company he co-founded in 1976 was battling for its life. But, under his second reign, it developed the iPhone and iPad and became the world's most valuable technology company.Bringing back a former chief is no guarantee of success, although proponents of the move will likely cite the triumphant return of Steve Jobs to Apple in 1997. At the time, the company he co-founded in 1976 was battling for its life. But, under his second reign, it developed the iPhone and iPad and became the world's most valuable technology company.
Howard Schultz performed a similar revival at Starbucks, when he returned as chief executive in 2008 after an eight year hiatus. Its shares have since risen more than eightfold from a low of $7.17 in 2008.Howard Schultz performed a similar revival at Starbucks, when he returned as chief executive in 2008 after an eight year hiatus. Its shares have since risen more than eightfold from a low of $7.17 in 2008.
But Michael Dell has been less successful. He returned in 2007 to the computer maker he founded only to find an industry in crisis, as consumers turned to tablets and smartphones instead of new PCs. The company recently recommended Dell's offer to take it private in a leveraged buyout worth $24.4bn, or $13.65 a share – a far cry from the $56-plus high of the dotcom boom.But Michael Dell has been less successful. He returned in 2007 to the computer maker he founded only to find an industry in crisis, as consumers turned to tablets and smartphones instead of new PCs. The company recently recommended Dell's offer to take it private in a leveraged buyout worth $24.4bn, or $13.65 a share – a far cry from the $56-plus high of the dotcom boom.
Our editors' picks for the day's top news and commentary delivered to your inbox each morning.