Infosys Expects Digital Transformation To Drive Future
Infosys Ltd. expects focus areas like digital transformation and cloud computing among enterprises to drive the software industry in the future.
The company held its first virtual annual analyst meeting on Nov. 11, with the occasion marking three years of its leadership team headed by Chief Executive Salil Parekh. Nearly 47% of its revenue comes from the digital segment, according to its latest exchange filing.
Here’s what the company said during the meeting.
Nandan Nilekani, co-founder of Infosys
- Technology trends have evolved over the last 13 years over cloud and digital transformation. Consumerisation of user experience was one of the first trends since 2007.
- Acceleration of open source products have helped the consumers and rise in cloud computing has been seen.
- Post Covid-19, the digitalisation of enterprises has become very important. Growth of digital platform business has changed the legacy business system.
- Rise in artificial intelligence and deep learning seen at enterprise and consumer level. Execution of cloud on boarding of companies is pending.
- “Will stay as long as I am required and complete my job.”
Salil Parekh, CEO and MD
- Strategic blueprint for last three years for the company includes scaling digital capabilities, deepening automation and artificial intelligence, re-skilling labour and expansion of localised talent.
- Investment phase is behind us all and all new investments will be funded by the profit/loss account. We’re well-positioned to continue growth and margin trajectory.
- Continue to see more acceleration in cloud industry for the future. Seeing consolidation in the vendor space over the last six months.
- Changes in U.S. political scene regarding visa won’t change the long-term plans of the company.
Pravin Rao, Chief Operating Officer
- Remote working has improved productivity levels, with stress on hybrid working model. Company is reaping benefits for accelerated use of agile products in last 24 months.
- Localisation staff programmes in U.S. and Europe will mitigate short-term challenges for visas.
- Attrition is expected to increase in the coming financial year but it will be below 13-15%.
- Don’t anticipate any challenges for the supply side, as company will hire 15,000 individuals in 2021.
- Seeing interest for $500 million deals across segments, but more traction seen in the range of $150-250 million.
Nilanjan Roy, Chief Financial Officer
- Promotions started in the second quarter, and hikes to start from the fourth quarter of fiscal 2021.
- Artificial intelligence will be key driver for future cost optimisation for the company.
- Seeing steady improvement in onsite mix with focus on hiring local talent. Sub-contractor costs continue to be lowest in the industry.
- Confident of surpassing cost optimisation of $150 million in fiscal 2021. Increased capital allocation policy to shareholders from 75% to 85% of free cash flows since last year.