Infy rejigs industry units to boost growth | business | Hindustan Times
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Infy rejigs industry units to boost growth

India’s second-largest software services company Infosys has initiated the process of restructuring its business divisions (verticals) as it seeks to streamline operations and expedite decision-making processes.

business Updated: Apr 18, 2011 21:42 IST
Vivek Sinha

India’s second-largest software services company Infosys has initiated the process of restructuring its business divisions (verticals) as it seeks to streamline operations and expedite decision-making processes.

In its new set-up, Infosys will have five divisions — four major industry verticals and one minor division — against the existing eight business divisions.

Banking, financial services and insurance (BFSI) and manufacturing would continue as two major business divisions for the company. Energy, telecom and services is being clubbed together as one major vertical under the new plan against the earlier break-up where each of these were recognised as separate divisions. Retail, logistics and life science would comprise the forth while fifth will be public services and healthcare.

The infotech major had on Friday announced a 13.6% jump in net profit at Rs1,818 crore for January-March quarter. “We are trying to create new engines of growth,” S Gopalakrishnan (Kris), CEO and MD, told HT. The process begun a few months ago, he said, without giving details on when it is expected to be completed.

The company is also investing in next-generation technologies such as Cloud services and Mobility solutions.

The adoption of Cloud is going up at a rapid pace, Gopalakrishnan said. “A lot of companies have moved their IT services expenditure into the opex (operational expenses) model compared to the earlier capex (capital expenditure) model.” The company needs to be prepared to take advantage of these changes, he added.

The company is also keeping a close watch on the rapid proliferation of smartphones and tablet computers. “Every industry will in some way be impacted by this change,” he said, adding, the company is investing in solutions based on these technologies.

The board of Infosys will meet on April 30, to decide upon the successor of NR Narayana Murthy, who is set to retire from the post of company’s chairman. It is believed that the board is also likely to name Gopalakrishnan’s successor on the same day.

Ringing in change
In its new set-up, Infosys will have five divisions — four major industry verticals and one minor division — against the existing eight business divisions

Gopalakrishnan refused to comment on the board’s agenda. The Infosys stock closed down 2.8% at Rs2,905.5 on the Bombay Stock Exchange.