At the end of the third quarter of FY13, Infosys BPO business and banking product division, Finacle, recorded a sequential growth of 10% while the India business grew by a resounding 44%. The overall quarterly sequential growth registered by Indias second-largest IT exporter stood at 5.7%.
Talking to FE, V Balakrishnan, member of Infosys board and head of these three business units, said, The BPO and India business will grow faster than the companys average in the foreseeable future though in the case of Finacle there will be certain lumpiness as one must understand it is product business.
This upbeat momentum for the three business units is based on the strong growth opportunities available for them despite stiff economic challenges.
The BPO business of Infosys has found more deals coming its way as they are able to provide major cost savings along with delivering certain efficiencies to companies in the developed and emerging economies which are very focused on reducing their expenses to remain competitive.
Our focus on selling to institutions and corporations in emerging economies like Asia Pacific, India, eastern Europe and Latin America is starting to play up. We have invested in these geographies which is now yielding results. We have move the needle and not just focusing on selling solutions to US and European companies but targeting companies in emerging economies, said, Swami Swaminathan, CEO and MD, Infosys BPO.
The BPO business recorded a revenue of $150 million at the end of third quarter and it would not be far away before it touches the $1-billion mark of annual revenues going by the current growth rates.
In the case of India business, Infosys has posted very stellar growth during the quarter primarily on account of its strong order book and many of the signed contracts having moved into the implementation stage. The company recently bagged certain key orders from government bodies like India Post and ministry of corporate affairs.
However, Balakrishnan said that they will now have focus more on the private sector in India as these companies have started to slowly get into outsourcing mode. The only business which is not expected to show certain linearity in growth will be Finacle as it is very heavily dependent on the discretionary spend of customers.
M Haragopal, senior vice-president and global head, Finacle, said, The challenges in the market have not gone away but are breaking new grounds in markets like Africa and South East Asia. We are also moving beyond our core banking solution and getting into areas such as mobile banking, wealth management and digital commerce.
These three businesses of Infosys though smaller in size have the ability to scale much faster drawing on its on the traditional strength of IT services and consulting.