3 secrets behind frequent restructuring of an IT firm

We recently heard about organizational restructuring in top IT companies of India -- wipro and Infosys. And this is not the first time that such an exercise has happened in these companies. If you look back into time, you will find that this happens quite frequently. So, business vertical based organizations get converted to geography based and then again to vertical based and the cycle goes on and on. So, let's see the reason cited by these orgs:

When moving from vertical based to geography based --> "This will enable us to focus on those particular geographies, hedge our risks, develop an employee base that understands the culture in particular geographies etc...."


When moving from geography based to vertical based --> "This will help us provide the whole range of services in a particular vertical and seamlessly across the globe etc...."

However, i see different benefits from it:

1. Satisfying aspirations of people
Well, this is a double-edged sword. On one hand you could be creating new designations or re-designating people in order to cater to their aspirations but at the same time some other people might feel that their aspirations are not going to be met and hence decide to leave the organization (some might also leave just out of jealousy). So, extreme care needs to be taken on this part.

2. Increased networking within groups
Since the people that formed one single group are now spread across different groups --- there is an automatic creation of communication channel between the new groups and their people. Hence, the level of networking and knowledge sharing gets a boost. Nothing else can lead to this level of networking (and that too at all hierarchical levels)

3. Fresh enthusiasm - like when you join a new company
Again a double-edged sword. People will need to prove themselves again (since their bosses have changed) and hence restructuring infuses fresh blood into the organization. However, some people might also think "Since this is going to be like working in a new company, why don't i actually go ahead and join a new company where i will also get a good jump in pay". These guys were previously sticking to the company because they gave more importance to their own comfort level in the organization then the pay they were getting.

Is the next big restructuring approaching your firm? Maybe yes, if it's been a long time (3+ years) since the last restructuring.