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Rediff.com  » Business » Infosys to complete restructuring by month-end

Infosys to complete restructuring by month-end

July 14, 2011 10:56 IST
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Bangalore-based Infosys is planning to complete the restructuring process of its business divisions by the end of this month, said a senior executive of the company.

Chief Operating Officer S D Shibulal denied that the first quarter results regarding volume growth was impacted due to the ongoing reorganiastion process.

"The first phase of the restructuring that consisted of the business operation has been completed. It comprised 55,000 people and we have done it smoothly. This basically allowed us to realign ourselves into four new verticals. While I do not want to underplay the complexity we have undergone, we had planned it pretty well," said Shibulal.

The second phase of theprocess involves the consulting and systems integration (business transformation) space and is expected to be over by July-end.

"This is slightly complicated than the previous segment but we will get through this as well," he said.

The consulting and SI contribution to the company's revenue is 30 per cent and the people involved in this realignment from the services segment would be in excess of 20,000.

Infosys had earlier reorganised itself into three services focus - business innovation, business transformation and business operations.

The company also realigned itself into four verticals - financial services and insurance; energy, utilities, communications and services; manufacturing; and retail, CPG and life sciences.

The third phase would consist of product and platform (business innovation),
but will not see any major realignment as it is a new focus area for the company.

"While this will see some change but will not have the same scale as the other two services focus. It will have a lot of people from within the organisation who have shown the capability and ability to build product and solutions.

"Hence it will not be as large, but this group will have the potential to be a huge deal mover," said Ashok Vemuri, head, banking capital markets & global strategic sourcing.

The company is yet to announce who would head this unit.

Vemuri further said the product platform and solutions capability will be built into each of the verticals that the company has presence in.

"Increasingly clients purchasing patterns is moving away from pure services to someone that can bring in services along with product capability and domain knowledge. We do expect to see a significant growth in this segment both from topline perspective and more importantly as a margin enhancer. Today product, platforms and solutions contributes around 8.5 per cent and is growing at around 4 per cent. But we do expect this to grow faster."

The product offering from Infosys would be unlike Finacle, which is an enterprise offering. The new products that the company plans to come out with is expected to be a niche product and can be rapidly deployed.

Infosys is already working on three such products in for the financial services segment.

These would cater to segments like mobile payment, regulatory and compliance requirements and analytics.
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