Monday, May 06, 2013

Infosys enters IT Training?

It is reported that Infosys is entering IT education segment with plans to spin off its Mysore campus into a training arm. Lets look at the possible reasons for Infosys to take this step
  • Infy cannot afford to keep thousands of people in training so the campus, which it had inaugurated only a few years back with much fanfare, is underutilized and is looking at the skies for much of the time. 
  • Infy wants to monetize its real estate holdings 
  • Convert a cost centre into a profit centre 
  • Does not want to lay off training staff, which might be a PR disaster, so has got made them masters of their own fate 
  • Infosys really believes that training segment is a real money spinner (
  • Perhaps it was inspired by an ex Infosys employee who now heads an education company in the neighborhood or maybe it wants to get back at him for deserting infy a few years back
Whatever be the reason, it actually could be positive for players such as NIIT and Aptech for the following reasons 
  • Some people, who had written off IT training market, would take note and start believing there is a future still 
  • Improves the image of the Indian education sector which has been punished due to corporate governance issues at some prominent listed companies ultimately benefiting those who have a better image 

1 comment:

Amit Sharma said...

Its really good that Indias prominent it company are giving training to young graduates..nice post..
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