Infosys sees a billion dollar in the cloud

Infosys held its annual management planning session last week to take stock of its initiatives and plan for the next financial year. A key goal is to ensure that the Bengaluru-headquartered IT services exporter ends the ongoing fiscal year at a fa...

Agencies
Digital pulled 40% to Infosys' revenue and is growing at a time when legacy unit is contracting.
BENGALURU: Infosys is doubling down on plans to make cloud, data and experience becoming billion-dollar businesses and will continue to make most of its acquisitions in these areas in the next fiscal year, sources told ET.

Infosys held its annual management planning session last week to take stock of its initiatives and plan for the next financial year. A key goal is to ensure that the Bengaluru-headquartered IT services exporter ends the ongoing fiscal year at a fast growth clip, which will set the stage for the next.

“The focus on these aspects of digital will continue. We have a strong strategy and we will continue on this path. The acquisitions will be around those areas,” an Infosys executive told ET.


For the third-quarter, digital contributed over 40% to Infosys’ revenue and is growing at a time when its legacy business is contracting.

Last month, Infosys said it would pay about $250 million to acquire a Salesforce platinum partner in the US, a deal that bolsters its cloud play. Past acquisitions have also helped its digital strategy.

“We are always in discussions but there is competition for these deals and there is concern about over-paying. We have had issues with acquisitions in the past, so everyone is aware of that,” the executive said.
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Infosys declined to comment for this story.

Cognizant announced two cloud deals last month — one in the US and the other in France. Analysts have said the acquisitions are a key part of IT services growth.

“The SAP, Microsoft, Oracle service lines are drying up as customers are moving to Software-as-a-Service offerings, of which Salesforce is the largest platform. Now, instead of the CIO, the chief marketing officer controls more of the spending and they prefer these models, so it makes sense to build those service lines,” said Sanchit Vir Gogia, CEO of Greyhound Research.

Infosys will also continue to make it easier for employees to take decisions on large deals, without needing to seek permission from senior management at every level.
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“One of the reasons that large deal wins have been strong is because of the empowerment of account managers and heads of verticals. The focus is continuing growth momentum,” a source with knowledge of the discussions said.
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