At Infosys, V Balakrishnan is playing for bigger stakes

Infosys's second-quarter numbers disappointed yet again, lending credence to the perception that the company's high-value business model is not resonating with customers in a difficult economic climate. However, the side show - Chief Financial Officer V. Balakrishnan moving away from the finance role - is probably more intriguing.

Bala, as he is called, will remain part of the company's board and continue to head the banking product group Finacle, the business process outsourcing unit and the India Business Unit. Rajiv Bansal, currently the vice president of finance, will fill Bala's shoes.

What is Bala trying to do here? Was it because the company has been grossly underperforming over the last many quarters, ceding ground to nearest rival Cognizant?

Surely, he is not alone to be blamed. And to his credit, he can count Infosys's recent acquisition of Zurich-based Lodestone, a buy that will help the company maintain a slight revenue lead over Cognizant on a yearly basis for the moment.

Even Executive Co-chairman Kris Gopalakrishnan has good things to say. In a press note, he said: "Bala is one of the finest CFOs in the country. He has led his team in setting new standards in financial reporting, corporate governance and compliance. A top performer, he successfully managed a high-quality financial model which has withstood the pressure of the current economic downturn. Given his belief that younger people should get strategic opportunities to shape this company, he has voluntarily given up his CFO position."

Balakrishnan, 47, has bigger things in mind. By quitting the CFO's role, he probably wants to concentrate more on front-end, market-facing businesses - running Finacle, the BPO and the domestic businesses. Success here will put him in contention for the next Infosys CEO.

Currently, the head of the banking, financial services and insurance vertical, B.G. Srinivas, 51, and manufacturing chief Ashok Vemuri, 43, both board members, are widely seen to be the company's next CEO bets, after S.D. Shibulal, 57, retires. Balakrishnan is making a strong statement of intent.

Infosys's succession planning for the next CEO has to be done in the next one year and one of these three has to be made chief operating officer.

Even in his new portfolio Bala seems to be at a disadvantage as he has a small global footprint compared with the other two.