Infosys is planning to merge its banking product team Finacle with the newly formed subsidiary EdgeVerve Systems.
According to persons in the know of the move, the merger, part of company CEO Vishal Sikka’s strategy to strengthen the focus on product business, will be made by end of July. Earlier this month, Chief Operating Officer Pravin Rao in an analyst call had mentioned Infy’s plan to integrate its subsidiary Lodestone and its management consulting services unit into a single entity.
EdgeVerve Systems is the product and platform subsidiary of Infosys formed last year.
Infosys has already sent e-mails to senior managers in Finacle seeking opinion regarding the restructuring. “We have received mails in this regard,” said an official, who is not authorised to talk to media.
When contacted by The Hindu , Infosys in an e-mail statement said, “We do not comment on speculation.”
Infosys had earlier given an opportunity to its employee to join EdgeVerve, where they were taken through tough round of interviews and most of the employees failed in getting through to EdgeVerve.
Earlier in an interaction in November, EdgeVerve Systems CEO and Managing Director Sanjay Purohit had mentioned that the company was trying to inculcate best practices of global technology companies and the salary offered by EdgeVerve was on a par with many giants such as Google, Amazon and Microsoft.
With this merger, around 6,000 people in the team will become a part of EdgeVerve, which has now around 600 people. As on December 31, 2014, product and platform contribute around 4.6 per cent of the company’s total revenue wherein major contribution is from Finacle.
According to the sources, the employees, who are moving in from Finacle, will be given new offer letter and salary hike in April.
