Infosys reloading


Infosys held their 3rd annual analyst meet in Boston on the 30th of July. There was none of the usual hullabaloo about growth in revenues or the usual marketing speech that characterizes such events. Instead, Infosys focused on talking about initiatives around Agile, updates about their Edge portfolio and Cloud-based offerings. So, where are they on their 3.0 journey? What have they got right? What more needs to be done?

3.0 update

Infosys’ 3.0 strategy stretches over at least 7 years (both 1.0 and 2.0 lasted about 15 years each) and they are at the tail end of year 2 of the journey. Infosys 3.0 is driven by a focus to be more client-centric by focusing on non-linear growth and increasing stickiness through a vertical-specific go-to-market strategy. This will be supplemented by increasing geographical closeness to clients and supported by a deepening of their horizontal technology portfolio. The ultimate aim is to totally revamp their revenue mix with a heavy focus on driving growth through consulting and products, with objectives to derive 40% revenues from consulting & SI, 20% from products, and the remaining 40% from their traditional basket of business IT service offerings.

What we heard and how that reflects in the Annual Report for the FY ended March 2013:

  • Consulting & SI is doing remarkably well and contributed about a 30% of Infosys’ revenues for FY13. The addition of Lodestone has added muscle to their consulting business and this service line may well cross the target of 40% revenue contribution within the next year or so.
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