Software major Infosys, which is preparing to announce its first-quarter
results tomorrow, may see major changes in the organization structure
soon.
People familiar with the development told ET NOW that InfosysBSE 1.03 % chairman NR Narayana Murthy is working out the final details of a re-org which could be announced in the next few weeks. The same sources added while consulting firm McKinsey is advising Infosys on the re-org process, Infosys vice-chairman Kris Gopalakrishnan and CEO SD Shibulal are also involved in the discussions.
Infosys, in response to e-mail queries on this development, stated, "As a policy we do not comment on rumors and speculations."
One of the sources said, "McKinsey is the only external agency involved in the process. The structure is changing constantly but there are lots of changes expected in portfolios, delivery and sales structure."
The second person said that in terms of delivery, the company is expected to simplify the current matrix structure, which was creating confusion in the market. In terms of portfolios, the company's new structure is likely to have a global head of delivery and a global head of sales, for which the top contenders are board members BG Srinivas and Ashok Vemuri respectively. There is however, some uncertainty on whether the company will have a COO role.
As part of the re-org, board member V Balakrishnan, who took charge as chairman of Lodestone recently, is likely to get a meatier role where he will have 'board oversight on Finance', with the CFO reporting into him.
These developments come a month after Infosys founder NR Narayana Murthy returned to the company as executive chairman, in an attempt to revive the fortunes of the company. Infosys, once an IT bellwether has been lagging peers in the last few years, as it struggled to implement its Infosys 3.0 strategy. But, Murthy's return has raised hope that the company will get its mojo back.
"Murthy is a very quick decision-maker and it's a positive that he's already finalizing a re-org. His mere return will not help Infosys. Changes are also needed and the sooner he does this the better," said an analyst with a brokerage who did not wish to be named.
People familiar with the development told ET NOW that InfosysBSE 1.03 % chairman NR Narayana Murthy is working out the final details of a re-org which could be announced in the next few weeks. The same sources added while consulting firm McKinsey is advising Infosys on the re-org process, Infosys vice-chairman Kris Gopalakrishnan and CEO SD Shibulal are also involved in the discussions.
Infosys, in response to e-mail queries on this development, stated, "As a policy we do not comment on rumors and speculations."
One of the sources said, "McKinsey is the only external agency involved in the process. The structure is changing constantly but there are lots of changes expected in portfolios, delivery and sales structure."
The second person said that in terms of delivery, the company is expected to simplify the current matrix structure, which was creating confusion in the market. In terms of portfolios, the company's new structure is likely to have a global head of delivery and a global head of sales, for which the top contenders are board members BG Srinivas and Ashok Vemuri respectively. There is however, some uncertainty on whether the company will have a COO role.
As part of the re-org, board member V Balakrishnan, who took charge as chairman of Lodestone recently, is likely to get a meatier role where he will have 'board oversight on Finance', with the CFO reporting into him.
These developments come a month after Infosys founder NR Narayana Murthy returned to the company as executive chairman, in an attempt to revive the fortunes of the company. Infosys, once an IT bellwether has been lagging peers in the last few years, as it struggled to implement its Infosys 3.0 strategy. But, Murthy's return has raised hope that the company will get its mojo back.
"Murthy is a very quick decision-maker and it's a positive that he's already finalizing a re-org. His mere return will not help Infosys. Changes are also needed and the sooner he does this the better," said an analyst with a brokerage who did not wish to be named.
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