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
