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Infosys to rejig operations, split into smaller business units

08 September, 2016

Infosys Ltd, the country’s second-largest IT services company, is restructuring its operations and splitting itself into 12 to 15 smaller business units from the current structure where it has four large verticals, according to a report.

The Times of India reported, citing sources it didn’t identify, that each unit will have revenue of $500-700 million, its own sales heads and profit and loss responsibilities.

At present, the company is divided into four verticals—banking, financial services and insurance ($3 billion revenue), retail and life sciences ($2.3 billion), manufacturing and hi-tech ($2.2 billion), and energy and utilities, communications and services ($1.9 billion).

The report cited CEO Vishal Sikka as saying that the reorganisation will help in better market penetration and client management.

The exact number of units and heads of each is likely to be finalised by October, it said. The company is also likely to do away with some layers between the customer and the company to create sharper sales and delivery units, it added.

The restructuring move joins a growing list of measures that Sikka, the first non-founder CEO of Infosys, has taken to speed up growth at the company after taking charge in August 2014. 

The Bengaluru-based company expects revenue for the current financial year to grow 11.8% to 13.8% in dollar terms. This is higher than the 9.1% jump in revenue to $9.5 billion it reported for the year ended on March 31.

Infosys is also investing in companies working on innovative technologies. It has earmarked a $500 million innovation fund for investments in new technologies on automation, Internet of Things and artificial intelligence.

The company has made several startup investments over the past year. This includes $4 million each in Israeli cloud-based software solutions providers Cloudyn and CloudEndure and $3 million in WHOOP Inc, a US startup that offers performance optimisation solutions for professional athletes and sports teams.

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Infosys to rejig operations, split into smaller business units

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