 "Capgemini inducts Vemuri into top management body")
Vemuri, believed to have played a key role in driving the valuation of IGATE through multiple initiatives, has now been inducted into Capgemini's all-powerful group management board, which manages the group's operations, apart from formulating its strategies.
The company is learnt to have made an internal announcement about Vemuri's induction to the board, circulated late last week.
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Currently, Capgemini's group management board comprises seven members, including chairman and CEO Paul Hermelin. Other than Vemuri, another person of Indian origin, Salil Parekh, is part of this board. Parekh, who heads the company's Application Services One and Sogeti units, was earlier this year made deputy CEO of Capgemini, a position he shares with Patrick Nicolet and Olivier Sevillia, both of whom are also members of Capgemini's group management board.
The other two members of this board are Hubert Giraud, head (people management and transformation) and Aiman Ezzat, chief financial officer of Capgemini Group.
A spokesperson confirmed with the induction of Vemuri, the company had increased the strength of the group management board to seven.
Vemuri's induction into the board comes as somewhat of a surprise, as it was widely believed the former Infosys executive might have been planning to leave IGATE after overseeing the integration, something he had hinted at during a recent teleconference. In April this year, Capgemini had announced it was acquiring IGATE for $4 billion, a valuation of 14.5 times its earnings before interest, tax, depreciation and amortisation.
In a recent interview with Business Standard , Sujit Sircar, IGATE's chief financial officer had said no senior executive at IGATE, including Vemuri, would leave the company.
He had added in the absence of a significant overlap, IGATE's integration with Capgemini wouldn't lead to any job loss. "All this speculation that people will be taking money and walking away is absolutely absurd. On behalf of the entire management, let me tell you we will very much be part of this great and exciting journey, absolutely every one," Sircar had said last month. Industry insiders say the fact that Vemuri was staying with Capgemini at a senior position would be critical to the success of the acquisition.
It would not only help keep the senior leadership of the acquired entity together, but also boost the morale of Capgemini's huge employee base in India. "There are a few examples in the industry of CEOs of acquired companies staying beyond the period for which they are contracted, to wear golden handcuffs.