iGATE Corporation: Toxic Talent and Organizational Resilience

Case Solution

Nidhi S. Bisht, Jyotsna Bhatnagar
Ivey Publishing ()

In May 2013, iGATE Corporation suffered a severe blow after firing its president and CEO Phaneesh Murthy on charges of sexual harassment. Murthy had previously been forced to resign from Infosys Limited for similar reasons. After Murthy’s unceremonious departure, iGATE struggled to occupy its top spot. In September 2013, a new CEO finally took office and outlined an action plan that was completely different from the strategy of his predecessor. But the company, which had high ambitions, lost momentum and seemed aimless. Would iGATE have made a mistake hiring Murthy as a senior manager just 18 months after he was fired from Infosys? Why hasn’t iGATE performed due diligence on talent acquisition and management, especially for the critical CEO role? How could other organizations reverse a vulnerable position to become resilient?

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