Infosys rejigs biz, opens separate unit for India

Infosys rejigs biz, opens separate unit for India
BS Reporter / Bangalore October 26, 2007

In a major move, Bangalore-based Indian IT major Infosys Technologies has reorganised its business and opened a separate unit to focus on India. The company contends that the reorganisation, effective from November 1, is in anticipation of the changes in the global IT industry.While MNCs such as IBM and HP and Indian companies like Wipro have been active in the Indian market, Infosys had not attached much importance to the domestic market on the grounds that the margins were less. However, now the company has opened a separate India Business Unit (IND) to tap the growing domestic market.The company has also turned its attention towards new markets such as Australia, China, Japan, West Asia, Canada, South America and Latin America. It has formed a business unit -- New Growth Engines -- which will expand the company's business in these countries. Srinath Batni, member of Infosys Board, has been entrusted with the task of increasing focus on delivery excellence. There will also be increased focus on R&D and commercialisation of intellectual property (IP).Infosys CEO&MD Kris Gopalakrishnan said: “Over the last several years, Infosys has grown significantly, and today we are at the cusp of becoming a $4 billion organisation. There is a need to realign to create a structure that can meet the new challenges of our strategic direction, increased customer expectations and higher levels of competition. I am confident that this reorganisation will enable us to compete better in the global markets.”Infosys, has formed six vertical industry business units (IBUs) and five horizontal business units (HBUs) that cut across all the vertical units. The IBUs are Banking and Capital Markets, Communications, Media and Entertainment, Energy, Utilities and Services, Insurance, Healthcare and Life Sciences, Manufacturing, Retail, Consumer Products Goods and Logistics, according to a release from the company.The HBUs are Consulting Solutions, Enterprise Solutions, Infrastructure Management Services, Product Engineering and Testing Services and Systems Integration. Infosys Consulting, the existing Domain Competency Group and various solutions groups within the units will become part of Consulting Solutions to create, deliver and coordinate global practices for enhanced solutions.In an effort to synergise its focus on sales and marketing, Infosys will consolidate the sales effectiveness, marketing, alliances and Strategic Global Sourcing functions under Corporate Sales and Marketing.The senior management team has been broadened. An Executive Council, chaired by the CEO, has been constituted and it includes he COO, CFO, executive board members and select unit heads. It has also increased scope for young leaders in evolving company strategy. Budding leaders below the age of 30 will be part of the management council of the business units.