Infosys does a TCS, breaks down business into smaller units to be lead by next-gen leaders

Infosys has decided to split its business into smaller units, a move which was taken by its rival Tata Consultancy Services (TCS) in 2009.

The smaller units, or businesses will be handled by the next generation of management.

Since Vishal Sikka took over as Infosys’ CEO in 2014, the company saw many top management exits.

Last week, Sikka told analysts in Pune that he was breaking up the company into more autonomous units with profit and loss (PNL) responsibilities.

"It gives us scalability, it gives us isolation and accountability of individuals," Sikka told analysts in Pune.

The smaller units will have a dozen of clients with revenues between $500 million and $700 million each. This would enable more focus on clients and their requirements and coordination.

"Infosys has just three members of its management team ultimately responsible for all verticals among themselves (all three are presidents) vs eight vertical heads at TCS," said Viju George, analyst with JPMorgan.

TCS had split its company into smaller units in 2009 and had 23 'mini CEOS'.