Info-tech

Infosys restructures service line

K Giriprakash Venkatesh Ganesh Bangalore | Updated on May 12, 2014 Published on May 12, 2014

Merges cloud and infra management services businesses for greater synergies





Infosys has restructured some of its business practices in an effort to simplify and transform its clients’ IT requirements.

India’s second largest software exporter has merged its cloud computing and Infrastructure Management Services (IMS) businesses into one unit. This has been brought together as part of a strategic focus to consolidate its IMS business as well as create synergies. This will help industrialise the company’s clients’ IT but also transform and future proof them with cloud capabilities, a spokesperson with Infosys told Business Line.

“The skills and technologies we use to help companies drive the kind of transformational changes they are looking for in the management of their infrastructure often have a cloud computing component.”   This may include helping them manage and set up governance models for the use of public cloud services across their business or set up and create their own private cloud models. Or have a combination of both approaches in a hybrid model. 

Both these services lines are miniscule when compared to some of the competitors. While Infosys does not break out cloud computing revenues, revenues from IMS went up marginally from 6.9 per cent in 2013 fiscal to 7.1 per cent in 2014, which is lesser than market leader HCL Tech’s 33 per cent and TCS’ 11.9 per cent during the same period.

Further, sources said the company’s strategic global sourcing unit has been put on the fast track. This unit focuses primarily on initiatives and developing expertise and skills to help Infosys bid for large outsourcing engagements, including transition management, contract negotiation, HR solutions etc.

Deal marketing

The unit also has a large deal marketing team that is core to the strategic global sourcing team. It works globally with account teams to conceptualise and execute integrated marketing campaigns to support the bids. The large deal marketing team usually works on deals that are over $100 million. As of March 31, Infosys had 13 $100-million clients, three $200-million and one $300-million clients.

The company, which is under a lot of pressure, as it lags peers like TCS, Cognizant in growth, is trying to make these changes to get into large-size outsourcing deals.

Combining the cloud computing and IMS businesses would help the company streamline its business practices with benefits to its clients that includes consolidated metering and billing, thereby giving more transparency to its outsourcing clients.

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Published on May 12, 2014
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