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From service to solutions in Infy makeover

Bangalore, Nov. 2 (PTI): Infosys Technologies plans to transform itself into a solutions provider from being a pure-play IT services to take on global players in a better way.

“From a services focus, we are moving to the solutions mindset. IT (solutions) allows us to compete with some of the more established companies in our domain. It also enables allows us to work with closely with clients and all the way to other business leaders,” Infosys co-founder and director S. Gopalakrishnan said.

The strategy the company aims to adopt is to break into the big mould by creating independent business units focused on specific industry verticals. These is an area where the Nasdaq-listed Infosys found initial success, especially in solutions for retail, automotive and aerospace firms.

“These units have actually piloted the solutions concept and the understanding of business issues. It is an attractive option because the structure should, in some way, support our strategic objectives. And definitely, one of the objectives is to increase the rates and profitability by doing this,” said Gopalakrishnan, who is also the chief operating officer (COO) of the company.

But, the biggest challenge for the Rs 3,634-crore major as it strives to enter the big league —a $ 1-billion company — this fiscal is to find the right people and manage them for sustaining future growth.

“The challenge is about managing the growth of people, recruiting the right kind of people, training them, enabling them and creating the right management structure. Because the business is there and we are all riding on this trend of offshore outsourcing,” he said.

Infosys, which has 17,095 employees hired over 4,000 professionals in the first six months of this financial year and plans to hire 3,000 more by March 2004.

But the company also has seen exit of high profile executives, including from Infosys’ 39-member management council and reasons cited include cut in pay hike for its employees.

Gopalakrishnan said the company had moved to a three-tier variable hike system, in which the employee gets his pay linked to the company’s profits, the team’s achievement and at the individual level.

Maintaining Infosys has the lowest attrition rate, he said, the company had enough management depth.

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