Harsh Chitale new HCL Infosystems CEO, replaces Ajai Chowdhry

An air of quiet unease belies the business-as-usual buzz at the HCL Infosystems headquarters at Noida, on the outskirts of Delhi. The influx of talent from outside at the 34-year-old technology major has left the old guard smarting. For the first time in 16 years, HCL has a new CEO. And in another first, he is not a promoter. About three months ago, a boyish-looking, 40year-old Harsh Chitale was roped in from Honeywell Process Solutions to replace founderchairman Ajai Chowdhry. Chitale's mandate is to drive the company, whose forte has been hardware and distribution, harder into the software business. As part of the new focus, HCL has also hired 98 managers6.7% of its total managersin the past 12 months. It's an edgy mix of the old and the new. The 129 senior managers, mostly campus recruits, have averaged 18.3 years in HCL; the 332 mid-managers have averaged 11.6 years. Several old-timers are miffed. They had no clue a CEO hunt was on. There is also a feeling they have been overlooked. Just one member of the 10-member executive management team, all of whom are elder to Chitale, has been entrusted with one of the new assignments. Even for its two new businesses, security solutions and learning, HCL preferred outside talent. It's a combustible mix at the Rs 12,159 crore hardware company. Once the group parent, HCL Infosystems is now seen, inside and outside, as residing in the shadows of its 1997 software child, HCL Technologies. In the last five years, while HCL Technologies has tripled its revenues and doubled its profits, HCL Infosystems has barely grown. It needs to grow, and do so while taking the old with the new. HCL Infosystems staffers spoke about the tension within, but off the record. "The company is changing something that has not changed in the past 15 years. You need fresh blood, but that causes friction within," says an employee who has spent five years in HCL. Another senior employee says people are upset, but there have been no exits. "There's hostility in terms of accepting change and new people," he says. "It's not easy for managers who have spent decades at one place to suddenly look outside." This makes the new CEO's job more challenging. Chitale steps into a big pair of shoes. He is the third chief of HCL, after group founders Shiv Nadar and Chowdhry, who control 50.2% in the company. But here is the catch: the founder is not going anywhere. Not just yet. Perhaps the most telling indicator is that the new CEO sits in an office next to Chowdhry's and still puts in the long hours. He does not even get to park his Honda Accord next to the founder's Bentley, which occupies prime space at the entrance. "It's an old school company that values authority and where positions matter," says a new recruit. At his first media interaction on October 21, Chowdhry fielded most queries, ranging from the shift to software services and plans. Chitale, calm and smiling, answered a few, but mostly nodded in approval.

"Give him time," says Chowdhry. "This is an induction, learning and familiarisation period." Chowdhry defends the secrecy around Chitale's appointment, saying that as a listed company, plans to appoint a new CEO could not have been leaked out. "I did apologise to the team," he says. Chitale says he has not sensed trouble in his short stay. "There's lot of vibrancy within, with a healthy mix of old and new," he says. But here is what Chitale is up against: his is the only new name in the 10-member executive management team. The others -- including the COO, CFO, and heads of marketing, services and HR -- have been with the company for 20-25 years. For instance, JV Ramamurthy, COO, has put in 22 years at HCL; HR head Vivek Punekar, a campus recruit, 24 years; Sandeep Kanwar, CFO, 22 years. When ET sought meetings with the top team, the HCL communication manager said Chowdhry has been there, done that, and that should suffice. "The COO is media shy and the CFO interacts only during quarterly results," he added. Chowdhry insists Chitale is not a proxy CEO. "My job changed the day he joined -- from leading to mentoring," he says. Chitale is understanding the business and getting the business plan for 2010-11 implemented. "That's when we see inputs coming from him," says Chowdhry. Some employees, who still see Chowdhry put in 11 hours in office, beg to differ. "Chowdhry, whose presence looms large, will have to make way quickly for a smooth transition," says a senior manager who joined HCL recently.

Shiv Nadar
Shiv Nadar (born 14 July 1945) is an Indian industrialist and philanthropist. He is the founder and chairman of HCL and the Shiv Nadar Foundation. As of 2012, his personal wealth is US$ 6.2 billion. Nadar founded HCL in the mid1970s and transformed the IT hardware company into an IT Enterprise over the next three decades by constantly reinventing his company's focus. In 2008, Nadar was awarded Padma Bhushan for his efforts in the IT industry. Nadar, nicknamed by friends as Magus (Old Persian for Wizard),[3] since mid-1990s has focused his efforts in developing the educational system of India through the Shiv Nadar Foundation.
Early life
Nadar was born in 1945 in Moolaipozhi village, about 10 kilometres (6.2 mi) from Tiruchendur in Thoothukudi district, Tamil Nadu, India. His parents wereSivasubramaniya Nadar and Vamasundari Devi in 1945.[5] His mother, Vamasundari Devi and S. P. Adithanar, founder of Dina Thanthi were siblings. He was a student of Town Higher Secondary School, Kumbakonam.[6] Nadar received a preUniversity degree in The American College, Madurai and degree in Electrical And Electronics Engineering from PSG College of Technology, Coimbatore. He began his career at Walchand group's Cooper Engineering in Pune in 1967.[7]

Career
Along with Ajai Chowdhry (Ex-Chairman, HCL Infosystems), Arjun Malhotra (CEO and Chairman, Headstrong), Subhash Arora, Yogesh Vaidya, S. Raman, Mahendra Pratap and DS Puri,[8]initially Nadar started Microcomp to sell teledigital calculators in the Indian market.[9][10] HCL was founded later in 1976 with an investment of Rs 187,000.[11] In 1980, HCL ventured into the international market with the opening of Far East Computers in Singapore to sell IT hardware. The venture reported Rs 1 million revenue in the first year and continued to address the Singapore operations.[12] Nadar remained the largest shareholder without retaining any management control.

Focus on education and healthcare

In 1996, Nadar founded SSN College of Engineering in Chennai, Tamil Nadu in the name of his father, Sivasubramaniya Nadar. Nadar takes active role in the college activities including gifting of Rs. 1 million worth of HCL shares to the college.[13] In 2006, Nadar announced that the college will promote research apart from ensuring that students benefit from foreign university tie-ups.[14] Nadar joined the Executive Board of Indian School of Business in 2005.[15] In March 2008, Nadar's SSN Trust announced setting up of two Vidyagyan schools in UP for rural students where free scholarship will be provided for 200 students from 50 districts of Uttar Pradesh.[16]

Awards and accolades

In 2008, Government of India awarded Nadar with Padma Bhushan, the third highest civilian award, for his contribution to IT industry.[17] In 2007, Madras University awarded him honorary doctorate degree (D Sc) for his contributions in promoting software technology.[18] Nadar was also recognised as E&Y Entrepreneur of the Year 2007 (Services).[19]

Shiv Nadar
14 July 1945 (age 67)[1] Born Thoothukudi, Tamil Nadu, India Delhi, Chennai Residence Nationality Indian Alma mater PSG College of Technology Founder and chairman of the HCL Occupation Founder of SSN Trust $6.2 billion (2012)[2] Net worth Kiran Nadar Spouse(s) Roshni Nadar Children Sivasubramaniyan Nadar Parents Vamasundari Devi

Board of Directors

Shiv Nadar Founder, HCL Chairman, HCL Technologies and Shiv Nadar Foundation

Vineet Nayar Vice Chairman & Joint Managing Director

Robin Abrams Director

Subroto Bhattacharya Director

Amal Ganguli Director

R. Srinivasan Director

Sosale Shankara Sastry Director

Keki Mistry Director

Subramanin Madhavan Director

Sudhindar Krishan Khanna Director

Srikant Madhav Datar Director

Shiv Nadar
Founder, HCL Chairman, HCL Technologies and Shiv Nadar Foundation

Mr. Shiv Nadar established HCL as a startup in 1976 Acknowledged as a visionary by the IT industry and his peers; Mr. Shiv Nadar has often made daring forays based on his conviction of the future. Albeit a more recent entrant in the software services space, HCL is already among top Indian IT software majors and a force to reckon with for global technology giants. Mr. Nadar was conferred the Padma Bhushan Award - the third highest civilian honor conferred by the President of India in January 2008, in recognition of not just his contribution to trade & industry in India but also his deep commitment to public good. In 2009, Forbes Magazine featured him in its list of 48 Heroes of Philanthropy in the Asia Pacific region. In September 2009 the UK Trade & Investment India presented Shiv Nadar the 2009 Businessperson of the Year Award in acknowledgement of HCLs pioneering investment in the UK. In November 2009 he was conferred the CNBC Asia Business Leader Award for Corporate Social Responsibility, their Asia Viewers Choice Award and India Business Leader Award for the year. The University of Madras and IIT Kharagpur awarded him an Honorary Doctorate Degree in Science for his outstanding contribution to IT in India. Determined to give back to the society that supported him, Mr. Nadar has been quietly supporting many significant social causes through the Shiv Nadar Foundation. The Foundation is committed to provide the means to empower individuals to bridge the socioeconomic divide and to contribute to the creation of a more equitable, meritocracy based society, and aims to achieve this primarily through outstanding educational institutions of higher learning. It has established the not-for-profit SSN College of Engineering in Chennai, ranked among Indias top fifteen private engineering colleges. The Foundation is also running VidyaGyan schools in Uttar Pradesh that provide free, world class education to rural toppers from economically disadvantaged backgrounds. Mr. Shiv Nadar is an active member of the Executive Board of the Indian School of Business (ISB), Hyderabad. Concerned with the public health issues in India, he is involved with the Public Health Foundation of India (PHFI) - working to establish standards in public health education and to create a network of innovative world class India-relevant institutes of public health. The President of India appointed him the Chairman, Board of Governors, IIT Kharagpur. He also very strongly supports initiatives for the girl child and the empowerment of women.