The change was approved at a meeting of the board of directors here on Friday. Later in a press statement, Nadar, who has the majority shareholding in the company, said Choudhry's appointment was ``a natural progression for successfully steering the company from a pure hardware-driven to a services-focussed group company.''

Choudhry will continue to remain the chief executive officer alongside his new responsibilities. ``He has spearheaded the company to a clear, global growth path and I am sure that he will steer the company into a future built on stronger fundamentals and exponential growth,'' said Nadar.

HCL Insys has been the flagship of Rs 3,300 crore HCL group so far, but Nadar has of late expressed keenness on building one-year-old HCL Technologies as the main technology company.

Commenting on the move, industry analyst Sameer Kochchar said ``it is clear that Nadar is further encouraging professional management. This seems to be in line with the growth plans that he has for HCL Technologies. He has left HCL Insys in very safe hands. The market is likely to react positively to this move as the announcement has only formalised what was already expected.''

Under Choudhry's leadership, the turnover of HCL Insys has grown from Rs 400 crore in 1994 to Rs 950 crore in 1998-99. In the fiscal 1999, the company's performance in services saw the revenue increase to Rs 161.4 crore from Rs 105 crore in the previous year. It is aiming for a 35 to 40 per cent increase in the coming year.