Persistent CEO O’Connor quits, Sandeep Kalra more likely to take cost

BENGALURU: Persistent Systems CEO Christopher O’Connor has resigned from the Pune-based IT agency citing private causes. He joined the corporate barely 18 months in the past. O’Connor, in a letter to the board on Sunday, mentioned there was no materials purpose behind the resignation.
Sandeep Kalra, president of the know-how providers unit (TSU) at Persistent, is tipped to be the brand new CEO, sources instructed TOI.
Prior to this, O’Connor led the web of issues enterprise unit at IBM. His was a case of a buyer shifting to the seller firm. IBM is Persistent’s prime buyer, contributing 17% of its income. Persistent chairman and MD Anand Deshpande mentioned, “He helped in constructing out sure capabilities and improved positioning to faucet the alternatives, which helped us obtain a great quarter underneath troublesome circumstances.”
Persistent crossed $500 million in income and over 11,000 staff final fiscal, after over 30 years of its incorporation. The agency had a subpar efficiency by way of a lot of 2016-19 fiscals, however over the past six quarters, after a management revamp, its services business has proven good development.
Kalra joined Persistent two months after O’Connor and has managed to energise the enterprise, laying emphasis on a number of gross sales initiatives. Today, TSU contributes 77% to the agency’s income and Persistent’s turnaround is led by the rebound within the TSU enterprise with a 2.9% compounded quarterly development fee (CQGR) for the final six quarters. Kalra joined Persistent from Harman Connected Services(HCS), a Samsung firm, the place he was liable for the worldwide P&L for the digital transformation options enterprise unit.
Kalra, trade specialists consider, overshadowed different leaders within the agency due to the efficiency of his division. The IP enterprise has seen headwinds for a lot of quarters.
O’Connor is seen to have carved a definite identification for Persistent within the minds of consumers as a world options firm by way of its “digital mosaic technique” that integrates the “tiles” of cloud-based options, tailor-made to fulfill consumer wants. But some analysts identified that rising reliance on the IBM ecosystem is an added danger.
In an interview to TOI final week, O’Connor mentioned, “We are doing a number of digital cloud-oriented work. We don’t work on previous legacy codes. IBM requested a number of the IT companions to take a 25% reduce in what they do, however they didn’t actually reduce us after they noticed the work we do for them.”

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