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Infosys recasts sales structure; identifies 50 ‘must have, must grow’ clients

    Venkatesh Ganesh
    K. Giriprakash
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Targeting $100-m clients
Targeting $100-m clients

Infosys has reorganised its sales structure and identified 50 major ‘star’ clients that have the potential to generate revenues of $100 million.

The company is moving away from the top-down strategy (especially for outsourcing deals) to the setting up of client-partner teams. A notch below the CEO, Mr S.D. Shibulal, the ‘client-partner’ teams will be led by Mr Basab Pradhan, Head of Global Sales and Marketing. These will supported by delivery-partner teams led by Mr Chandrashekar Kakal, Senior Vice-President and Global Head of Business IT Services.

Infosys has identified 50 clients that are categorised as “must have, must grow”, or star accounts with the ability to generate extra business up to $100 million. This team will directly report to one of the four vertical heads.

‘silent period’

With the company in ‘silent period’, ahead of its quarterly results on July 12, a spokesperson said Infosys will not be able to respond to any queries.

The company is also eyeing Fortune 1000 clients, termed ‘must have’ accounts. This restructuring comes at a time when Infosys is facing pressures in growing business due to the slowdown in developed markets, and some of its clients scaling down their operations. While peers such as TCS and Cognizant continue to grow at a healthy rate, Infosys has predicted 8-10 per cent growth for FY13, which has prompted investors and analysts to question the company’s business strategy.

In FY12, Infosys has 40 clients in the $50-million-plus range. Further, the vertical heads will now have the leeway to re-balance the overall margin profile based on the importance of a particular deal.

This, analysts believe, would give them agility when clients are particular about IT spending.

“We believe empowerment of the second level management would make the organisation more agile in adapting to changes in this environment and reducing decision-making time. This would also improve accountability and responsiveness to client requests and free up top management for other strategic objectives,” said Mr Hitesh Shah, Research Analyst, IDFC Securities.

Mr Peter Schumacher, CEO of Value Leadership Group, said, “At this juncture, aligning management, customers and employees around new vision should be of paramount importance.”

New model

Infosys has moved to a new model. Earlier, it used to take services such as infrastructure management, testing, BPO and applications development individually to its clients. Now, it will combine all these offerings into a single one.

Also, it is taking chunks out of its four service lines and trying to bag multimillion dollar deals with these differentiated offerings.

venkatesh.ganesh@thehindu.co.in.

(This article was published on July 4, 2012)
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