BENGALURU: Technology research firm Gartner believes Infosys is poised to win significant market share over the next two years and that the software major may be on course to reach its goal to become a $20-billion company by 2020. “We are confident in the company’s near-term to mid-term growth forecast, based on the growing pipeline, marked improvements in attrition levels that are positively influencing win rates and a more targeted message that is resonating well with clients,” Gartner analyst Sandra Notardonato said.
BENGALURU: Infosys has proposed a significant expansion of its operations in Bengaluru, adding about 21,500 seats at the Electronics City software hub by spending about Rs 2,000 crore. If the plan fructifies, it will make Karnataka’s capital the biggest centre for the company, surpassing Pune. The company, which ended March 2015 with revenue of Rs 53,319 crore ($ 8.7 billion), has submitted a proposal to the government seeking clearances. Information technology minister SR Patil told ET that the software company is keen to pursue its investment plans in Bengaluru and create new jobs.
The bloom is coming off the rose for many Indian IT services firms. Over the past decade, India created a wealth-generating “engine” of innovation and an industrialised services model. That disruptive model took the world by storm. It humbled industry giants, bringing once-great firms such as EDS and CSC to their knees and forcing other great firms such as IBM and Accenture to adopt India’s model. Large Indian firms such as Cognizant, Infosys, TCS and Wipro became global leaders. The engine built a $100 billion-plus services industry that sheltered a generation of IT talent and placed India squarely in the centre of the knowledge economy.
BENGALURU: Infosys has acquired US-based digital experience solutions company Kallidus for $120 million that includes a deferred component and retention bonus. Kallidus offers including mobile commerce and in-store shopping experiences to large retail clients. It develops and host mobile websites, apps, and other digital shopping experiences across mobile, tablet, desktop, in-store and all emerging channels. The latest acquisition is Bengaluru-based IT company’s second acquisition this year.
BENGALURU: Infosys is set to identify and incubate about a dozen new ideas that could potentially bring $100 million (about Rs 620 crore) each and a total of over a billion dollars in incremental revenue annually over the next few years, as part of a strategy being spearheaded by CEO Vishal Sikka to propel growth at India’s second largest software exporter.
BENGALURU: Infosys is set to identify and incubate about a dozen new ideas that could potentially bring $100 million (about Rs 620 crore) each and a total of over a billion dollars in incremental revenue annually over the next few years, as part of a strategy being spearheaded by CEO Vishal Sikka to propel growth at India’s second largest software exporter. The company is in the process of identifying new ideas after zeroing in on areas such as artificial intelligence, automation and Internet of Things, two people directly familiar with the strategy said on the condition of anonymity.
While the Indian IT firms are getting aggressive in buying smaller ticket size companies in the US, sources with direct knowledge share that one such candidate, Sierra-Cedar with HQ in Georgia, US is close to launching a sale process soon. Valuation expectation for a complete sale of Sierra-Cedar is pegged at around $350 million, a source said.
BENGALURU: Infosys and Accenture have entered the final lap to clinch a Rs 900-crore ($150 million) IT outsourcing contract from Australia-based financial services provider Macquarie Group. The five-year contract will include application development, testing and infrastructure management services (IMS), said sources privy to the development. Macquarie provides banking, financial, advisory, investment and funds management services. It employs more than 13,900 people in 28 countries.
BENGALURU: Infosys plans to allocate a quarter of its $500-million (about Rs 3,000 crore) fund to invest in startups in Silicon Valley, Israel and India along with venture capital firms. India’s second-largest software services exporter has had discussions with about two dozen VC firms, including Andreessen Horowitz, for such investments, two people familiar with Infosys’ strategy said, requesting anonymity. “There are no formal agreements with any particular VCs. The strategy is to back startups and entrepreneurs with ideas that align with the company,” one of them said. “The idea is not just to be a passive financial investor but take disruptive solutions to customers.”
It’s been a decade and a half since the Indian IT industry began its ascendancy into the IT services stratosphere, quickly becoming a key supplier of much of the world’s IT-related software services needs. Today, it is a $100 billion-plus industry, with around $35 billion of business emanating from the US alone. But as it wends its way along the evolutionary path, some things have been made clear to even the casual observer:
BANGALORE, India—As its growth slows, India’s technology services outsourcing industry is struggling to become less dependent on peddling the services of inexpensive programmers and trying to enter new businesses like off-the-shelf software and helping customers with big data and cloud computing. India’s leading outsourcers, including Tata Consultancy Services Ltd. and Infosys Ltd. , said last month that their profit growth was squeezed last quarter by dwindling demand from the U.S. and Europe.
BENGALURU: Infosys, after signing its first big-ticket acquisition under CEO Vishal Sikka last week, is evaluating a dozen more startups — all aimed not at bulking revenues or adding clients, as Indian IT companies typically do, but at gaining cutting-edge technology such as automation and artificial intelligence (AI). “We have a dozen targets we are looking at now,” Sikka said in an interview to ET, days after the software company bought automation startup Panaya for Rs 1,200 crore ($200 million).
BENGALURU: Infosys will hire 30,000 people in the next financial year, the lowest in the last three years, reflecting partly the company’s growing emphasis on automation and productivity improvements. The number was first mentioned by CEO Vishal Sikka in an investor call earlier this week to discuss the acquisition of US automation company Panaya. Infosys subsequently confirmed the number to TOI.
MUMBAI: After decades of low-margin work like server maintenance, India’s information technology services firms are moving upscale in search of lucrative contracts for driverless cars and other advanced projects as online innovation changes clients’ needs. Companies from Tata Consultancy Services Ltd to Wipro Ltd are all joining Infosys Ltd in investing in new, high-end technology, industry watchers say. Earlier this week Infosys bought US automation specialist Panaya Inc for $200 million.
NEW DELHI: Country’s second largest software services firm Infosys today said it has secured a multi-year, multi-million dollar deal with ABN AMRO to provide IT services to the retail and commercial bank. Infosys, a strategic partner of ABN AMRO, will deliver services across application development and maintenance, testing and product implementation, the company said in a statement.
MUMBAI: Infosys said it would buy automation technology company Panaya Inc, at an enterprise value of about $200 million, as the third-largest IT company in the country looks to boost competitiveness and margins. The Bangalore-based firm said Panaya’s technology would help it bring automation to several service lines through a software-as-a-service model, reducing risks and costs and the time taken to bring services to the market.
MUMBAI: Even as the furore over layoffs in the IT sector is yet to die down, Infosys has said re-skilling talent is the answer to rapidly changing technologies in the software landscape. “It is not that there are tens and thousands of people (available) with experience in new technologies. The idea is to re-skill people. If technology changes and people don’t have those capabilities, you’ve to re-skill them and re-orient them,” Infosys, Chief Operating Officer, Pravin Rao said on the sidelines of an industry event last week.
NEW DELHI: Once an IT bellwether, Infosys expects to regain its premier status and beat industry growth rates in the next 18 to 30 months. The over $ 8 billion company’s market performance has been improving with every quarter and its latest quarterly results are reflective of that, says its CEO Vishal Sikka.
NEW DELHI: Infosys, the country’s second largest IT services firm, is open to ‘bigger scale’ mergers and acquisitions but with a caveat, it is not interested in “yesterdays” companies. The Bengaluru-headquartered company, that was once the bellwether of Indian IT industry, also says it is primarily interested in taking over innovative companies and in areas like automation and artificial intelligence.
MUMBAI: Infosys is now neck-and-neck with Tata Consultancy Services (TCS) in terms of operating margins, a year-anda-half after the Bengaluru-based company lost the most profitable IT firm title to its Mumbai-headquartered rival. Infosys was known for having the fattest margins in the IT industry in the last decade, but over the past two years, it shrank dramatically. In the second-quarter of fiscal 2013, TCS overtook Infosys to become the most profitable IT company in the country. A year later, TCS posted an operating margin of 30.2%, miles ahead of Infosys’ 21.9%.