HCL Infosystems, on Tuesday, said it would spin off its hardware, services and learning businesses into separate entities in a bid to create a leaner organisation.
While the hardware and solutions business would be transferred to a wholly-owned subsidiary called HCL System Integration Ltd., the learning and services businesses would become subsidiaries known as HCL Learning Ltd. and HCL Caring Ltd.
“The board of directors of HCL Infosystems, at its meeting held on Jan 14 approved alignment of the hardware solutions, services and learning business along three subsidiaries.
“This has been done with the objective of providing a focused management orientation to each growth area and creating a leaner organisation for the hardware solutions business,” the company said in a statement.
At present, the company’s hardware solutions business comprises personal computers, tablets and systems integration. HCL Learning Ltd. would house the company’s offerings on DigiSchool, learning content, test preparation, while the services subsidiary would encompass lifecycle support services and the company’s care businesses.
The company, however, is yet to announce the heads of these subsidiaries.
“Different businesses are at various stages of maturity. Some of the more mature businesses require re-tooling in order to be prepared for a business environment. While the restructuring will provide greater visibility on the financial performance of each business, it would also address more effectively the funding needs of these businesses,” the company said.
The board also approved the merger of its wholly-owned subsidiary HCL Infocom with HCL Infosystems.
“The appointed date of the aforesaid shall be January 1, 2013. While the telecom distribution business would continue to be with the parent company, the existing wholly-owned subsidiary Digilife Distribution and Marketing Service Ltd would continue to be engaged with the distribution of non-telecom products,” the company said.
