BackInfosys to maintain focus on traditional business
Infosys wants one-third of revenue to come from new areas such as cloud computing, mobility in next three-five years
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Mumbai: While there are some signs that Infosys Ltd’s 3.0 strategy is working, the country’s second largest software services company said it will maintain its focus on the traditional “bread and butter" business.
Infosys 3.0 focuses on new technologies and platforms such as cloud computing and mobility, and was launched when S.D. Shibulal took over from S. Gopalakrishnan in April 2011 as chief executive. The company wants one-third of its revenue to come from these new areas in the next three-five years; currently, less than 10% does.
“There is a perception in the market that Infosys is de-focusing on the traditional bread and butter IT services market.., but this perception is not true," said Chandrashekar Kakal, senior vice-president and global head of business IT services.
Kakal, who is also a member of the Infosys executive council, said the company has identified three focus areas that are expected to contribute equal revenue.
Kakal didn’t comment on when revenue from the transformation and innovation service lines would equal that of traditional IT services, the mainstay of the company since its inception.
The emergence of new service areas does not threaten the conventional business as around 60% of the technology spending still happens in the non-discretionary area, he said. “Automation will not nip at the traditional industry, but will complement it."
In a sign that Infosys may be regaining growth momentum lost to rivals such as Tata Consultancy Services Ltd and Cognizant Technology Solutions Corp., it has raised the revenue growth forecast for the year ending 31 March from $7.3 billion projected in October to $7.45 billion. Infosys’s October-December quarter revenue grew 12.1% to ₹ 10,424 crore.
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