Infosys Technologies has decided to reconstitute its board after the resignations of two of its board members Mohandas Pai and K Dinesh. Head of banking, financial services and insurance unit (BFSI) Ashok Vemuri, head of the company?s manufacturing vertical BG Srinivas and chief financial officer V Balakrishnan are likely to be inducted into the board, sources told FE.
While Vemuri’s BFSI vertical has contributed to 36% of Infosys? FY11 revenues of R27,501 crore, the manufacturing vertical under Srinivas has provided for nearly 20% to the firm?s top line. CFO V Balakrishnan has given a stellar performance ever since Mohandas Pai stepped down from the position in April 2006. All the three are seen as rising stars and potential CEO candidates.
Prior to the resignations, the Infosys board had six company executives. Besides Murthy, Pai and Dinesh, it had CEO Kris Gopalakrishnan, COO SD Shibulal and Srinath Batni, the firm?s head of delivery excellence. For the first time this year, non-founders of the company would outnumber founders in the board?s internal representation.
When approached, outgoing board member and HR chief Mohandas Pai refused to comment on either the transition or prospective executives who could join the board. Other executives refused to comment as well.
Sources said that Infosys?s reorganisation involving five ?super-verticals? also heralds the rise of five new leaders in the company ? those responsible for much larger profit and loss (P&Ls) accounts. Apart from Vemuri and Srinivas, Prasad Thrikutam and Pravin Rao are steadily rising in the ranks. Thrikutam will now head the consolidated verticals of energy, utilities, telecom while Pravin Rao would head retail and logistics. The fifth vertical, relatively new, is public services and healthcare. Focused on US government deals, it is headed by Eric Paternoster. Infosys has just started to bid for deals under the new vertical.
?Vemuri and BG Srinivas are clearly two men to watch out for ? both are prospective CEO candidates in the future. And both can be in the running for the COO?s post now,? sources said. People who know the executives closely said that Vemuri is good at strategy and is articulate too. Srinivas, on the other hand, is good with delivery and people skills.
Larger P&L responsibility with vertical heads, however, does not imply that horizontal service-line heads are becoming less important, the company?s top management stressed. CEO Kris Gopalakrishnan told FE that under the new structure, verticals in Infosys will have stronger P&Ls while horizontal service lines will have softer P&Ls.
?Horizontal service line heads do have the capability to look at their profitability. They would have targets and significant say in quality, productivity, people development, and training. However, when it comes to clients and delivering services, the stronger axis is the client axis or the vertical axis,? he said. ?Besides vertical heads, there are future leaders in the ?operate, transform and innovate? lines of business as well. They are extremely capable people,? he added. Infosys is expected to complete reallocation of portfolio in another quarter.