In a significant rejig, India's second largest software services firm Infosys
has swapped the portfolios of two of its youngest board members, Ashok Vemuri and BG Srinivas. From April 1, Vemuri, the company's veteran of the banking, financial services and insurance (BFSI), will take charge of the manufacturing portfolio while Srinivas will head BFSI. Srinivas has been responsible for serving Infosys's manufacturing customers for over five years now. Business Today had taken a close look at Vemuri and Srinivas in "The new face of Infosys" (September 2011
In the three months to December, BFSI generated 35 per cent of the firm's overall revenues of $1.8 billion. Manufacturing clients contributed 20 per cent. Sequentially, last quarter, manufacturing grew faster at 4.8 per cent while BFSI rose 3 per cent. Although BFSI companies are the biggest spenders on technology globally, it wouldn't be an easy task for Srinivas. The sector, according to Infosys's non-executive chairman K.V. Kamath, who also chairs ICICI Bank, India's second biggest bank by assets, could shrink over the next five years.
The move tells a lot about the company succession planning - Infosys is preparing for a life without its founders. SD Shibulal
, the current CEO, is set to retire in four years time. Vemuri and Srinivas, along with CFO V Balakrishnan, are expected to be in the running for the post.
Company insiders told Business Today
that the restructuring is meant to induce fresh blood into both the verticals. "While BFSI has been growing fast for the company, manufacturing has always had slower growth. The swap would make sure that Srinivas gets an equal chance to lead the firm's biggest vertical - BFSI," one executive said.
Another person with close knowledge of the company said the swap is meant as a test for the two executives who would have to prove their mettle in sectors they are unfamiliar with. "It would give both the executives a more rounded view of the corporation, preparing them for the CEO's job," he said.