Indian IT giant Infosys is enacting its plan to integrate the company’s Zurich-headquartered wholly-owned subsidiary Infosys Lodestone and its management consulting services into a single unit. Originally, Infosys had acquired Swiss management and IT consulting firm Lodestone Holding AG in September 2012 in a record deal of worth $349.58 million. Infosys said in a statement, "To strengthen and consolidate our consulting services, we are integrating Lodestone and our Management Consulting Services Unit into a single entity that will reside within Infosys Limited. This new structure will become operational on April 1, 2015."
The consulting division of the IT firm accounted for 32.6 percent of its revenues at the end of third quarter of FY15. From its recent operations, it has been evident that Infosys is looking at organization restructure in key areas of sales, delivery and business enabling functions. Pravin Rao, COO of Infosys said at a conference, "Lodestone is folded into Infosys consulting and was a subsidiary company earlier." Ronald Hafner, partner-CEO, Infosys Lodestone has decided to leave the company and post the acquisition chances are high that Sanjay Purohit, CEO and managing director, EdgeVerve Systems Ltd, will head the company’s management consulting services.
Under the leadership of Vishal Sikka, the company is looking out for new avenues to revive growth led by innovation. The first non-founder CEO of Infosys in August 2014, he has been focusing on newer technologies such as big data, analytics and mobility. Infosys is looking at optimizing costs and streamlining its workforce across locations, and within one year time, Sikka has already prioritized inventive solutions across all its services including automation and artificial intelligence.