The Hindu Business Line : Infosys hires consultant to chalk out revamp plan

Mumbai, May 21 The country’s second largest software exporter Infosys Technologies is exploring options to revamp its organisational structure and has hired a consultant for the same.

The Bangalore based company is currently in the phase of ‘re-banding’ and hence is examining whether it should move away from the role-based organisational structure adopted in 2002, Ms Nandita Gurjar, Vice-President and Group head, HRD, said during an interaction with newspersons, here on Wednesday.

“We want to understand whether the role-based organisational structure is still valid; it is a nine-month long exercise and we will have some kind of diagnosis ready in the next two months,” said Ms Gurjar.

A role-based organisation means that the number of layers within the company gets reduced. Promotions are based on the readiness of the individual for a higher role and the career growth of the individual is linked to the growth of the company.

Forex fluctuations and the recent meltdown in the US credit market have prompted IT companies to rejig their organisational structure, an analyst tracking the sector said on the condition of anonymity. It started with TCS in February this year, when it reorganised its global operations into five different units.

The company also intends to increase the spend on education and training of its employees by 15-20 per cent as compared to the Rs 700 crore spent last year, according to Mr T.V. Mohandas Pai, member of the Infosys board.

“For every new employee, Infosys spends around $5,000 (Rs 2.05 lakh) a year on training; the company spends about $1000 (Rs 41,000) a year on training its existing employees,” Mr Pai added. Infosys employees about 92,000 employees; for the current fiscal, it has already unveiled plans to hire about 25,000 people.

The company sees wage in inflation for the year at 11-13 per cent. The scrip was down by 0.85 per cent to close at Rs 1871.25 on the Bombay Stock Exchange on Wednesday.

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