Infosys to boost investment in cloud computing, apps
July 13, 2014
Grazed from TheHansIndia. Author: Kuldeep Nayar.
India’s second largest IT services provider Infosys Ltd said on Friday it would boost investment in cloud computing, smartphone apps and other new technologies to win more high-margin outsourcing contracts.
The move towards these more lucrative deals heralds a change in focus by Infosys, once a trendsetter in India’s $100 billion IT outsourcing industry but which has struggled in recent years to retain staff and market share. Analysts say new technology is the next big requirement for global corporations. Infosys currently derives the bulk of its revenue from low-margin and highly competitive businesses like application development and maintenance and IT infrastructure management services. "Change is inevitable," Outgoing Chief Executive Officer and co-founder S.D. Shibulal told reporters after Infosys posted a higher-than-expected quarterly net profit growth of 21.6 percent…
Newly appointed CEO Vishal Sikka, a former senior executive at German software company SAP AG who combines both business and tech savvy, is expected to drive the strategy change in Infosys. Sikka will also have to stem a staff exodus, which hit record-high levels in the quarter to June 30 as well as revive Infosys’ innovative edge that, some investors, said was blunted by the outgoing, conservative management…
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