Infosys creates a separate unit to target telecom companies

Infosys has carved out a separate division to focus on telecom companies that look to leverage their network and subscriber base to transform themselves as content providers and retain their customers, as part of a rejig of its verticals.

The new unit — communications and services — is headed by Anand Swaminathan, global leader for communications, media and technology, based in Seattle. The business, which already an annual revenue run rate of $ 1.4 billion, was earlier part of the company’s energy and utilities vertical.

As part of the rejig, Infosys chief executive Salil Parekh has also merged its insurance business with the larger banking vertical, in line with many of its rivals. Insurance was earlier part of life sciences and healthcare vertical.

The rejig was to “deepen customer relationships, improve focus of sales investments and increase management oversight,” the country’s second-largest software services firm said in a regulatory disclosure last week.

Analysts said a dedicated division for communications services makes business logic for Infosys as the introduction of 5G services is expected to disrupt telecom industry, leading to close collaboration between telecom and media industries with unending streaming videos from content companies.

“The communications services segment is poised for strong growth over the next few years and will likely emerge as a strategic segment in which strong performance will be essential,” said Peter Bendor-Samuel, chief executive at global IT research and advisory firm Everest Group. Implementation of 5G networks itself would be a big opportunity, which will only increase with the convergence of “telecom and media,” he said.

Infosys declined comment for this story. Meanwhile, Infosys has named Jasmeet Singh as the head of its manufacturing business, after the exit of Nitesh Banga.