Vemuri steers iGate to look beyond the Murthy era

by Shweta Verma    Nov 26, 2013

ashok vemuri

iGate’s new CEO Ashok Vemuri seems unperturbed by the recent exits of senior leaders at iGate. Reacting to the recent spate of resignations, Vemuri explained that the new structure being created at iGate might see more people leaving the organization. “Some people found themselves out of place in the new structure,” he was quoted as saying.

Former Infosys leader Ashok Vemuri, who took over the reins at iGate after Phaneesh Murthy’s controversial exit, has created a major shake-up in the organization. The way the changes have been initiated it appear that Vemuri ‘really’ means business. He has categorically stated that he wants the existing leaders to align with the new model. “The people, who left, left for a whole host of combination of issues not just one. We will prioritize according to the business needs and leaders will have to adjust to it,” he told a group of reporters.

New model, new leadership

In the new structure, the organization will have smaller industry-focused business units with independent responsibilities with the heads focusing on consultancy, delivery and sales. “We are developing a new organizational structure where the leaders will have responsibility and accountability towards the clients, shareholders and employees,” explained Vemuri.

Perhaps a take-off from the Infosys model that helped the company establish its position in the North Americas, the new structure might just help iGate prioritize and focus its energies. The objective, clearly, is to create smaller more focused groups that not only have more power but are able to address important verticals and markets in a better way.

The new business model has been initiated to bring in greater decentralization and verticalization in the organization. This will mean iGate now needs more leaders who can independently drive each unit and leverage the emerging business opportunities.  A move that will certainly take the company away from the personality-driven era of Phaneesh Murthy.

The company is, therefore, looking at building resources and finding the ‘right’ leaders to lead the business units in the new structure.

 A more focused approach

Vemuri plans to relook at certain markets where the company was operating with a “half-hearted” approach. “Our biggest markets are North American and the Western European markets, where we have enough legs to derive significant returns. There are certain markets where we had a half-hearted effort. We will not scale those and there will be no initiative to seek more business,” he said.

Vemuri wants to ensure that the investments are directed selectively in the right kind of opportunities and move out of areas which don’t make sense. “Either investments have been misdirected or are not relevant. We have to get a little more shaper and focused and take essentially a VC type attitude and kill those that are not working,” Vemuri told a group of analysts.

Elaborating further on the marketing focus, Vemuri said while the firm will continue with its existing strategy, but the tone will be “reflective of the directional change.” To keep up with the changing requirements of businesses, there is a need to move beyond iTops, the outcome-based model popularized by former CEO Murthy as the company’s unique proposition to clients.