After top-level rejig, Infosys may look at acquisitions aggressively

The recent reshuffle in portfolios of the top deck in Infosys is expected to see the IT giant look at acquisitions aggressively.

According to its much touted version 3.0 strategy, Infosys was supposed to make one large acquisition apart from Lodestone. But that slowed down after it ran into rough weather. As per the strategy, all the verticals are to be aligned along three lines — operate, transform and innovate.

The internal changes that have been carried out are to see that Infosys strengthens its risk taking ability, say industry watchers. “One of the complaints against Infosys was that its appetite for risk and change was gone,” said Santhosh Babu, founder of Organisation Development Alternatives, a top management coaching firm.

With these changes, Infosys Chairman Narayana Murthy wants to send out a signal that the company is capable of taking speedy and effective decisions, said A.K. Prabhakar, Senior Vice President - Equity Research, Anand Rathi.

In 2011, Infosys came out with its 3.0 strategy, aimed at getting one-third of the company’s future revenues from software products, platforms and services, in addition to the bread-and-butter outsourcing services such as maintaining and writing codes. But that did not go according to plans. To address this, Infosys recalled Narayana Murthy in June.

Murthy’s main aim, since his comeback, is to build confidence in the company, say analysts.

According to the rejig, V. Balakrishnan, who currently heads Infosys BPO, banking software unit Finacle and consulting subsidiary Lodestone, apart from India business, will now have the additional responsibility of heading utilities in North America. Stephen Pratt, Global Head of Consulting and System Integration at Infosys, will have responsibility for utilities and resources and will report to Balakrishnan.

Also, Chandrashekar Kakal, global Head of Business IT Services, has been given additional responsibilities. He will oversee the consulting and systems integration business. This was earlier headed by Pratt, who now will report to Kakal.

Kakal, an Infosys veteran, who joined the company in 1999 grew up the ranks and went on to oversee 60,000 employees in business and IT services, according to Infosys.

The company has also created a Growth Markets Unit, which combines Asia-Pacific region, France and Germany and Dheeshjith V.G, who was responsible for life sciences business, will head this unit. In the European region, Infosys looks at Germany and France as key growth regions and Dheeshjith will drive this, according to a source.

When contacted an Infosys spokesperson said: “We have undertaken certain reorganisation within the company to further improve our client focus and competitiveness. A few senior leaders have seen their roles enhanced as part of this reorganisation as well as a result of Ashok Vemuri, the former head of America’s resignation.”

The Energy Communications and Services (ECS) business contributed 19.1 per cent of Infosys’ revenues at the end of June, a 1.9 per cent decline over the previous quarter, as per Angel Broking data. Business and IT services contribute 61 per cent of revenues and consulting and systems integration contributes 33.6 per cent.

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