Bangalore-based Infosys Technologies Ltd is close to signing three deals in the $50 million (about Rs200 crore) to $100 million range in the next three-six months and will offer these customers a mix of information technology and back-office solutions, continuing the trend of Indian IT services firms winning larger orders by doing this.
According to Amitabh Chaudhry, chief executive officer and managing director of Infosys BPO, the company’s back-office arm, Infosys has already signed two such deals in the $5-7 million range in the past three months. He declined to divulge further details on the deals.
Indian IT services firms have been increasingly looking to integrate their IT services and back-office offerings in an attempt to sell better to customers. Apart from winning them more business, the so-called integrated model helps them reduce costs and build better relationships with clients. Some companies even choose to integrate their IT infrastructure management operations along with such offerings.
An analyst said that offering integrated services to customers meant more than patching on discrete services. That isn’t integration, said Sabyasachi S. Satyaprasad, research director at offshore advisory firm NeoIT. “What they need to do is ownership of managed services, improve existing services and bring innovation and efficiencies for leveraging technology for business processes. IT and BPO (business process outsourcing) should leverage each of the other’s components,” he added.
Infosys will not necessarily use the platform-based approach on these deals but will help clients pick what they want. In the platform approach, a service provider runs business processes on a platform and simply allows customers to get on to an existing one (as opposed to building a new platform).
Chaudhry said the company is already targeting “platforms such as procure-to-pay, hire-to-retire, order-to-cash, besides (those on) the sales, general and administration side,” but added that it would, “in the next 12-18 months” continue “to look at IT-BPO integration.”
Over the past two years, the integrated approach has worked well for the country’s largest software services firm Tata Consultancy Services Ltd, which has signed more than a dozen “integrated” deals, including a $1.2 billion one with Nielsen Co. in October.