The Great CFO Shuffle: Top execs are playing financial musical chairs in India’s IT sector #IndiaFinance

The Indian IT sector has seen a wave of high-profile CFO transitions in the past year, with several executives moving between rival companies, underscoring the challenges of enforcing non-compete clauses in India. This trend is reshaping the leadership landscape in the industry and highlighting the evolving strategies of major IT firms.

One of the most notable moves was Jatin Dalal’s transition from Wipro to Cognizant. Dalal, who served as Wipro’s CFO until November last year, succeeded Jan Siegmund at Cognizant after Siegmund’s retirement. Wipro initially sought Rs 25 crore from Dalal for breaching his contract by joining Cognizant immediately. However, Cognizant resolved the dispute by paying Rs 4 crore to Dalal, settling the lawsuit and related arbitration with Wipro.

In response to Dalal’s departure, Wipro promoted Aparna Iyer, a veteran with the company since 2003, to the position of CFO. Iyer has extensive experience in various leadership roles, including internal audit, business finance, corporate treasury, and investor relations.

LTIMindtree, another major player in the sector, appointed Vipul Chandra as its new CFO. Chandra previously managed the treasury at parent company Larsen & Toubro. Meanwhile, LTIMindtree’s former CFO, Vinit Teredesai, has taken up the CFO role at Persistent Systems, further reflecting the fluidity of top financial talent in the industry.

Legal experts, such as Vikram Shroff from AZB, told TOI that while non-compete clauses are commonly included in employment contracts, particularly in the technology sector, they are difficult to enforce in India. These clauses are intended to protect company and customer information from being used against the company’s interests by departing employees.

Mohandas Pai, former CFO of Infosys, noted that the promotion of internal candidates to CFO roles indicates strong internal talent and a well-planned succession strategy. However, when companies bring in external candidates for top finance positions, it may suggest a perceived gap in internal talent.

HCLTech has also seen a recent CFO change, with Shiv Walia being promoted to replace Prateek Aggarwal, who left to explore opportunities outside the company. Additionally, Mphasis appointed Aravind Viswanathan from Tanla Platforms as its new CFO after Manish Dugar’s resignation.

Shriram Subramanian, founder and managing director of InGovern Research Services, highlighted that while CFO appointments do not require shareholder approval, companies are increasingly willing to offer higher compensation for these roles, reflecting the growing importance of financial leadership as these firms expand rapidly.

The quick succession of CFO transitions in India’s IT sector points to a dynamic and competitive environment where top financial talent is in high demand. As companies continue to grow and evolve, the role of the CFO becomes even more critical in steering them through new challenges and opportunities.