Infosys goes TCS way, splits business into smaller units

Infosys plans to hire 10,000 American workers, open 4 US tech centersInfosys plans to hire 10,000 American workers, open 4 US tech centers

Infosys has decided to split its business into smaller units, which will be managed by the company’s next rung of management.The same decision was taken by TCS in 2009.

Since Vishal Sikka took over as Infosys’ CEO in 2014, the company saw many top management exits. The latest of which was that of ManishTandon, who was in charge of healthcare, insurance and life sciences. The Bengaluru-based company responded by concentrating responsibility in the hands of its presidents, a move that was questioned by analysts.

Last week, Sikka told analysts in Pune that he was breaking up the company into more autonomous units with profit and loss (PNL) responsibilities.

The smaller units will have a dozen of clients with revenues between $500 million and $700 million each. This would enable more focus on clients and their requirements and coordination.

TCS had done this seven years ago when N Chandrasekaran took over as CEO. TCS had split its company into smaller units in 2009 and had 23 ‘mini CEOS’. However Infosys declined to specify the number of units the company would be split into or discuss the names of the next generation of leaders.

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