'Infosys' focus is on simplification, leveraging technology, infra management'

Written by Sayan Chakraborty | Updated: Apr 17 2014, 01:37am hrs
BG SrinivasBG Srinivas said the key is to focus on cost optimisation and leveraging technology.
Despite overall market sentiments remaining muted, Infosys president BG Srinivas believes the company will show markets that they are hungry for growth. In an interview with Sayan Chakrabarty and PP Thimmaya, BG Srinivas said the key is to focus on cost optimisation and leveraging technology.

Excerpts:

How do you view the overall market scenario

If you look at macroeconomics, especially in the US, the signs of recovery are evident. It is slow, but the uncertainty has reduced. In Europe, there is a degree of stability. At the same time, for topline growth, forecasts are muted. Its not an extraordinary growth story. Hence, there is much focus on cost. The moment topline growth is not huge, entire pressure comes on profitability. Regulatory pressure is also affecting clients, along with risk management and security issues. For cost containment, they have to manage their expenses and budgets. Hence, there is focus on simplification, leveraging technology, reducing redundancies, application portfolio rationalisation, consolidation, infrastructure management and cloud.

What will be the impact on Infosys

When there is a reduced budget, clients are looking at solutions that we can offer by leveraging technology and drive costs down. Same people are competing for the common shrinking pie. So you need to become more dynamic and competitive. Then, the clients are looking for solutions. They look for vendors who can provide them with solutions that help them transform, simplify and enhance time to market. That is where the opportunities are.

Can we expect a more aggressive Infosys this year

As a company, we aspire to grow aggressively. We will show our aggression in our ability to compete. We have a lot of initiatives running for cost optimisation, in terms of reducing effort in our large programmes, demonstrating our hunger for growth and demonstrating our value proposition to our clients.

Is Infosys actively present in the rebid market

There are a lot of rebids in the infrastructure space. Definitely, we are active there. And even in the main application outsourcing, there are rebids. Our ability to convert and win ratio have improved in the last one year.

Will your onsite presence increase in FY15

In the beginning, onsite presence will go up. But we are also trying to increase the offshore effort as part of the solution itself. So, it will either balance out or marginally come down. But, we want to increase competitiveness and increasing offshore is one way to do that. With offshore, you can scale faster. Cost structures are lower. And of course, margin is better.

With $5 billion dollars in reserve, will Infosys be more active in pursuing inorganic options

We have always kept options open for investments. One could be in geographies where we have less presence, second if there are certain capabilities to acquire and the third element will be where target organizations have some intellectual property.