Infosys changes name and splits into four vertical sector divisions

Infosys has split itself vertically to enable it to do more work in specific business sectors, while a change of name reflects its broader remit.

Infosys, the company formerly known as Infosys Technologies, has announced changes to its business in an effort to develop closer relationships with customers and move towards more outcome-based models for charging customers.

Infosys is now split into four global business units. These are: financial services & insurance; energy, utilities, communications & services; manufacturing; and retail, consumer packaged goods logistics & life sciences.

Retail and manufacturing sectors grew the most in the latest quarter at 10% and 4% respectively. European head BG Srinivas said each vertical sector accounts for over $1bn per year of the company's revenues, which is roughly equal to the total company's revenue in 2004.

BG Srinivas said the new structure will support a move towards platform-based delivery models. He said engagement models, based on outcomes and transactions among other things, will increase over time: "Our aim is to move away from the time and materials model but this will take time because many customers are still happy with the time and materials model," he said.

Srinivas believes this will accelerate as a result of cloud computing. About 40% of the company's contracts are currently time- and materials-based.

Infosys dropped the term "Technologies" from its title because it did not "accurately reflected the company's evolution over the last 30 years from technology services to business-led consulting and solutions," said the company.

The company also announced its financial results for the first quarter on 2012. It reported sales of $1,671bn in the quarter that ended last month. This was a 4.3% increase on the previous quarter and 23% higher than the same period last year.

The company added fewer clients than the previous quarter at 26, but Srinivas said the deals were worth more because there were more Global 1,000 companies in the group. "While the total number added was lower, they are bigger customers," he said.