Infosys Eyes Acquisitions, Charts A Three-Year Roadmap To Accelerate Growth
India’s second largest information technology services firm Infosys Ltd. has outlined a three-year road map to stabilise and accelerate its business, and said it will invest in acquisitions to drive growth.
In a detailed presentation to analysts, Infosys Chief Executive Officer and Managing Director Salil Parekh said the company is betting on growth with strategic investments and “will invest in inorganic moves to expand client relevance.”
Key investments will also focus on enhancing the company’s capabilities and increasing localisation efforts, he said, adding that the company will return up to 70 percent of free cash flow, as part of a ‘disciplined capital allocation’ plan.
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According to the presentation, Infosys will focus on stabilisation in the current financial year followed by building momentum the following year, and acceleration thereafter.
Infosys said it is investing in digital capabilities and priority services, infusing artificial intelligence and automation, reskilling ‘talent at scale’ for company and its clients as well as hiring locally in various markets.
Infosys estimates the agile digital market opportunity to be between $160-200 billion.
The presentation noted that the IT major has a ‘large and growing agile digital portfolio’. Infosys’ digital revenue in financial year 2018 stood at $2.79 billion, which was 25.5 percent of its total revenue.
Parekh, who came on Board as the CEO in January this year, has been tasked with turning around the company, that faced a year-long acrimony between founders and previous management over corporate governance issues.