Priti Rao quits as chief of Infosys IMS
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Priti Rao, who was heading infrastructure management services (IMS) for IT major Infosys Technologies, has put in her papers. Ms Rao is an Infosys veteran, having earlier headed the delivery for Europe and its Pune development centre.
Infrastructure management services is one of the hottest emerging growth areas for Indian IT firms. The company is yet to find a replacement for Ms Rao. The business is currently being headed by UB Pravin Rao, who also heads the retail customer business. Client spending on infrastructure management is part of non-discretionary expenditure, which makes it largely recession-proof. Since most IMS engagements are large and multi-year, they also provide higher predictability and visibility to revenues.
Confirming Ms Rao’s exit, an Infosys spokesperson said, “Priti moved on to fulfil her personal aspiration of seeking higher responsibilities. We are in the process of identifying the next leader for the unit. We have a deep pool of senior managerial talent.”
Last year, Infosys’ nearest competitor and third largest software exporter, Wipro acquired Infocrossing — in what was the largest acquisition by an Indian IT company at $600 m — to boost its IMS revenues. Infosys CEO and MD S Gopalakrishnan had said it was also looking for large deals structured along the lines of its acquisition of the Philips BPO captive unit.
The percentage of IMS revenues has stayed largely constant for Infosys — while the company has been able to grow revenues from this segment, it has not been able to better the average growth from the rest of its business. For FY08, Infosys got 4.9% of its revenues from IMS, compared with TCS’ 6.5%. According to research firm Forrester, IMS is one of the fastest growing areas for both Indian IT firms and MNCs. For Indian IT firms, it is growing at 71%, compared with 14% for firms located outside India, according to the research firm.
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