Infosys Spins Off Products Business Into Separate Unit
"Edgeverve was created to focus on developing and selling products and platforms," said a filing with the
Edgeverve is the 39th subsidiary of Infosys and was incorporated on February 14, 2014. For some time now, Infosys has been holding discussions on whether to keep PPS, which contributes 5.2% of Infosys' $8.2 billion revenues, within the conventional IT services business or to make it a separate entity. In PPS, it has to envisage market demand and create products and platforms in anticipation of the demand.
"I think that the spin-off is an excellent strategy. The platform company is quite different; it has a different business model, supported by a different people model, a separate sales strategy and investment rhythm. Furthermore, it allows the service company to focus on its core business without the distraction of learning a different business," said Peter Bendor-Samuel, CEO of the IT research firm Everest Group.
Ray Wang, CEO of US-based IT research firm Constellation Research, said, "Product organisations have to build once and scale to many users. Service organisations deliver for one user and can easily make one-offs."
Infosys’ vision, under its 3.0 strategy, has been to lift the contribution of PPS to 33%, but it has failed in its endeavour. On the contrary, contribution from PPS declined to 5.2% in the financial year 2013-14, from 5.7% in 2012-13.
When the company’s co-founder NR
Popular on BI
- It's never been more clear: companies should give up on back to office and let us all work remotely, permanently
- Amazon is investigating its lawyers for allegedly bribing Indian government officials
- Mossad assassinated Iran's top nuclear scientist using an AI-powered, remote-controlled machine gun, report says
- Durex takes down its latest social media post on the bus scene from Netflix’s Sex Education after internet users call it ‘insensitive’
- Three reasons why this might be a good time to buy Bitcoin
- Sony ZV-E10 vlogging camera with interchangeable lens launched in India
- US, India, Japan, Australia to sign pact for stepping up chip production, reduce dependence on China
- Here’s how to schedule an email in Gmail