Vertically challenged INFOSYS

Vertically challenged INFOSYS

The announcement that Infosys is dropping “technologies” from its name is a sign that the Indian giant is getting to grips with the challenges of the market. Citing the need to get closer to the client and develop greater output based models, Infosys is splitting itself into four vertical application orientated businesses – as you would expect Manufacturing and Engineering; Financial Services; Utilities and communications and a bucket for the rest (retail, Pharma, etc).

The theory is that this model will concentrate minds and engender loyalty and innovation. The question is both Why and How will it do so. With no true consultancy capability and most of the work still done on a time and materials basis, Infosys have “little right of access” to the executive of their many clients. Like all Indian offshore companies, engineering skills are sound but that is usually where it ends.

Positioning to grow a deep client relationship requires strategic insight based on a deep understanding of that industry, demonstrable investment (current and planned), and a broad base of similar clients. It also requires a greater “in-country” footprint. Infosys has acquired numerous small to mid-size application houses throughout Europe, but for this bold plan to work these need to be fully and seamlessly integrated before the next round of acquisitions takes place. The mix of “on and offshore” resources must be blended extremely carefully to deliver the price point that clients expect of Infosys, otherwise all the investments made to date could become very expensive white elephant assets.

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