Sikka revamps Infy strategy, focuses on large clients

IT giant Infosys on Monday said it was reworking the compensation of its employees and structure of its top 200 customer accounts as the country’s second largest services firm looks to get back its lead position.

According to a report by The Economic Times,  Infosys CEO Vishal Sikka  is revamping the services major; breaking the tradition of different business practices by making the consulting arm work together with the sales team to service large clients.
 

According to him, this strategy is a new way to address an outsourcing customer’s problems, which involves understanding the business as well as behavioural aspects of new technologies on companies across the world. The company has a total work force of 176,000 people and works with around 950 clients. Sikka however did not give out details with regard to incentives that would be offered, but said that he intends to bring the glory days back to Infosys, when it was offering differentiated services.

Infosys has already identified 100 senior consulting partners to be made co-leaders for its top 200 client accounts. 

"Each of the top 100 partners will have the responsibility of two accounts. These consulting leaders along with the sales leadership will have strategic engagements with clients. We have incentivized them to grow the Infosys business in a meaningful way," Sikka said in a Deutsche Bank investor conference in Singapore on Monday.

He added that the CEO’s office was personally overseeing the top 15 customer accounts.

Referring to some of its competition such as TCS and Cognizant, Sikka said Infosys was being more disciplined when it comes to its sales and marketing efforts, an area where it lagged behind in the last few years.

Infosys said it has set a target to touch $20 billion in revenue at a 30 per cent operating margin and $80,000 revenue per employee by 2020. The company ended the last financial year with an operating margin of 26 per cent and revenue per employee of $52,500.