Infosys has hived off its products, platforms and solutions (PPS) business into a wholly-owned subsidiary called Edgeverve Systems. Infosys’ board has authorized the company to execute a business transfer agreement and related documents with Edgeverve, subject to securing the requisite approval from shareholders at the annual general meeting (AGM) scheduled on June 14.
“Edgeverve was created to focus on developing and selling products and platforms,” said a filing with the US Securities and Exchange Commission (SEC).
Edgeverve is Infosys’ 39th subsidiary and was incorporated on February 14 this year. Infosys is said to have appointed Sanjay Purohit as the CEO and Samson David as the COO of the newly-formed subsidiary. Purohit has been heading the products and platforms division since August 2011. Infosys has long been debating whether to keep PPS, which contributes 5.2% of Infosys’ $8.2-billion revenues, within the traditional IT services business or make it a separate entity. Unlike the services business where the company works for projects of other companies, in PPS, it has to predict market demand and create products and platforms in anticipation of demand. It also involves development of significant intellectual property to make the products distinct from rival products.