Are top level exits a part of corporate makeover?
By Binu Paul, SiliconIndia | Friday, 18 March 2011, 07:01 IST

Bangalore: Ever increasing attrition levels have always been a big worry for the Industry, but when the top level executives exit in quick succession, it's just more than a worry as one wonders if these are merely executive exits or well-planned corporate makeovers post recession?
Ravi Venkatesan, Chairman and Corporate Vice President of Microsoft's India operations had announced his resignation in February this year. The company statement said that he has decided to pursue opportunities outside Microsoft. What could be read with it is the fact there he was the third top level executive to leave Microsoft in a span of six months. Srini Koppulu, Managing Director, India Development Centre, Hyderabad and Rajan Anandan, Managing Director, Microsoft India had resigned from the company earlier. Microsoft's employee turnover was comparatively high under his Ravi's leadership. Many believe that it cannot be a sheer coincidence that these developments in India are taking place at a time when a leadership shake-out is on the process at its headquarters at Redmond. The U.S. media had widely reported that Microsoft CEO Steve Ballmer is 'cleaning the house' after its Head of the Server and Tools Business Bob Muglia quit.
The joint CEOs of Wipro Girish Paranjape and Suresh Vaswani had resigned after the company had announced its Q3 results. Stressing on the need for a simpler organization structure, Wipro Chairman Azim Pramji appointed T.K.Kurien as the Executive Director of the company. Their decision came soon after the company reported profits that lagged behind competitors Infosys and Tata Consultancy Services (TCS). Faced with severe competition from other players like Cognizant, Industry analysts have been predicting of Wipro being pushed to fourth position with Cognizant moving to the third.
It was officially announced that Ashok Soota, Executive Chairman and Co-Founder of MindTree, has left his firm to start a new venture, but the insiders suggest that the decision was triggered by some of the decisions gone wrong and cracks within the top management. It was learned that there were serious difference of opinion between the members of the internal board over company's strategies and policies. Issues on individual roles, leadership style, division of labor etc have led to his exit.
There are many similar top level exists such as Bhaskar Pramanik, MD of Oracle India and Vivek Mansingh, Country Head, Dell India R&D etc. who chose to step down with reasons being unknown to many.
As the IT industry is growing phase of resurgence after the economic slowdown, the Indian corporates understood the need for overall make over that would boost its growth potentials. Post-recession, companies have changed their business strategies to get rid of the survive mode and they hope a new leadership can figure out potential markets and technologies that can bring in good revenue. On the other hand, as most of the leading industry players have raised their hiring targets, the top level executives see a chance for a change as many glamorous careers are at hand.