In a key move, the country’s second-largest IT services exporter, Infosys, appointed V Balakrishnan as the new chairman of its European subsidiary Infosys Lodestone, the Switzerland-based management consultancy firm it had acquired last year. Balakrishnan replaces fellow board member BG Srinivas, who currently heads the company?s Europe and financial services and insurance verticals.
The internal restructuring comes within a few days of NR Narayana Murthy’s return as the executive chairman of the company. Balakrishnan, who was earlier tipped as Infosys? next CEO, had stepped down last year in October from his role as the CFO to shoulder responsibilities in the product platforms, BPO and India business space. Rajiv Bansal, vice-president (finance), took over as the new CFO from November. At that time, many believed that it was a step down for Balakrishnan, but Tuesday’s announcement is a comeback of sorts for him.
In an emailed response to FE, an Infosys spokesperson said, ?V Balakrishnan has been appointed the chairman of Lodestone and BG Srinivas will continue to be a key member of the board of Lodestone. This move is part of the regular re-allocation of portfolios to meet the company?s strategic objectives. The integration of Lodestone is progressing as per plan.?
Last year in September, Infosys acquired Lodestone for $350 million to strengthen its consulting and system integration business, which currently contributes about 32% to the company?s revenues. The buyout gave Infosys access to over 200 clients across multiple sectors such as automobiles, healthcare and financial services. At the time of the acquisition, the company said that Lodestone will function as a European subsidiary and BG Srinivas will be chairman of the new entity while Lodestone CEO Ronald Hafner will continue with the same designation.
Infosys has seen management transformation in the last two years, including reshuffle of top executives. In February last year, the IT major announced role changes for BG Srinivas and Ashok Vemuri. Srinivas moved from the manufacturing and engineering business to head the company?s financial services and insurance vertical, while Vemuri took on Srinivas? portfolio.
