Infosys To Downsize Onsite Services, May Cut Jobs


Bangalore: Infosys is considering downsizing its onsite services which may result in employees at support functions losing their jobs. The second largest IT company in India is on an attempt to ensure cost efficiency in its operations, reports Economic Times.

The report also says that the marketing team in the U.S. is also on the radar. This is said to be in an attempt to restructure the sales engine in the U.S. "Infosys feels that the SGS group is overlapping with what the sales function does," the report added.

Narayana Murthy and his son Rohan Murthy are said to be in U.S. for the last two weeks to work on the strategy to cut onsite services cost. The company’s onsite cost accounts for 46 percent of total cost as of March 2013.

However the management did not confirm anything about the ongoing process.

Yesterday there was another report where the Infosys Chairman Narayana Murthy is said to be over rid CEO Shibulal’s move to decentralize the decision making at the company. Murthy has made the sole decider on key decisions related to large technology contracts, like pricing and the way deals are structured, according to the three senior executives who choose to be anonymous.

But under the new centralized model proposed by Murthy, the company’s over $7-billion (42,000 crore) revenues from corporations in the U.S. and Europe, will now go through longer decision cycles.

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