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Outsourcing Company Fires CEO Over Undisclosed Relationship

Phaneesh Murthy, the former CEO, asserts that he did not violate any company policies.

A $1 billion Fremont-based outsourcing company that was recently praised by Forbes.com — and came under fire after a workers’ rights controversy — is again under the spotlight.  

According to various media reports, iGate recently fired president and CEO Phaneesh Murthy for allegedly violating company policy by not disclosing a relationship with one of his employees.  

Forbes.com reported last month that iGate has a workforce of 27,000 people and more than 300 large clients across the globe. The company’s revenues last year were nearly $1.1 billion, a 47-percent increase over the previous year. Much of the company’s success was credited to Murthy’s leadership.  

The Wall Street Journal reports that iGate received a complaint of sexual harassment against Murthy. However, an outside investigation could not find any evidence to support the allegation.  

Murthy told reporters via a conference call on Tuesday that he had a “personal” relationship with a senior iGate employee but that any claims of harassment were fabricated. Murthy went on to state that the relationship had recently ended and that he informed iGate of the relationship after the fact. His admission led to the investigation, the Wall Street Journal reports.  

Murthy is no stranger to such accusations. According to the Wall Street Journal, Murthy had been accused of sexual harassment in 2001 and 2003 while working at Infosys in India. Both cases were settled out of court.  

Gerhard Watzinger, a former Intel executive, will serve as iGate’s interim CEO and president.  

See the full Wall Street Journal report here.
Geoff Burton May 25, 2013 at 12:09 AM
Phaneesh Murthy, the former CEO, arrests that he did not violate any company policies. I think more proof reading is called for.

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