1. As CEO Vishal Sikka brings winds of change, cautious Infosys won’t neglect inorganic growth anymore

As CEO Vishal Sikka brings winds of change, cautious Infosys won’t neglect inorganic growth anymore

Infosys will look to acquire niche firms engaged in next-generation technologies...

By: | Bengaluru | Updated: December 6, 2014 10:57 AM
Infosys' Vishal Sikka affirmed that there was a massive and fundamental transformation occurring in the software industry. Reuters

Infosys’ Vishal Sikka affirmed that there was a massive and fundamental transformation occurring in the software industry. Reuters

Infosys, India’s second-largest IT services exporter, will look to acquire niche firms engaged in next-generation technologies, such as artificial intelligence, automation, internet of things and collaboration and design technologies.

Addressing the Infosys analyst meet in Pune on Thursday, chief executive officer Vishal Sikka said, “The core focus is our own organic growth but we believe it is necessary to complement it with an active inorganic strategy as well. We are interested in acquisition of  small innovative companies. We are not interested in acquiring technologies of yesterday but in acquiring technologies of tomorrow.”

Sikka, who took over as the first non-founder CEO of Infosys in August this year, remarked the company would also look at inorganic options in under-penetrated segments and geographies. Infosys has always been cautious on acquisitions. The last company it acquired was Lodestone, in 2012.

However, it has now intensified efforts of engaging with software startups globally. The IT major, which has created a separate fund to invest in these startups, is already holding talks with three such firms. Sikka said, “We have been working with startups to bring their capabilities to our clients and also extend it our operational services.”

Sikka, who presented an overview of the future direction of Infosys, affirmed that there was a massive and fundamental transformation occurring in the software industry. This is being driven by the increasing use of  technologies such as artificial intelligence, automation and mobility among others. However, the Infosys CEO reiterated that it would not reduce its focus on existing lines of services while scouting for new businesses. He said that Infosys would be renewing existing businesses while searching for the new avenues.

On the operating profit margins of the company, Sikka maintained that as it goes about building a next-generation IT services company, Infosys will aspire to be a industry leader in revenue and margin growth. The IT major is expecting to maintain an operating profit margin of 25-28% over the medium to long term.

“Once again, we aspire to become the leading bellwether IT company we used to be, but it will take time and will not be easy,” Sikka remarked.

Addressing the meet, Infosys Chief Operating Officer Pravin Rao said that the company has been making efforts to improve sales effectiveness and has hired over 200 such professionals.

He said that they have undertaken various measures to bring down attrition through a combination of improved compensation packages and attractive career paths.

Sikka wants fundamental change in mindset

CEO Vishal Sikka has said he wants to change the fundamental mindset at Infosys, which revolves around following orders. “One of the depressing things that I have learned in last four months is that clients think of us as a beautiful follower of orders and not people who are bringing innovation,” Sikka said during the analyst meet. The next wave of murmuration — a new initiative for employees to share ideas — will be for those learning to speak up. Sikka felt that a change in mindset from problem-solvers to problem-finders will be the essence of innovation.

fe Bureau

  1. H
    Harry Potter
    Dec 6, 2014 at 5:16 pm
    Mr Vishal Sikka said in recent ToI interview - quote - Indian Youth do not speak up, just follow orders - unquote. Here are my suggestion to Mr Sikka to help Indian IT reach next level of creativity and freedom to speak-up.-------------------------- Mr Sikka said that Indian Youth do not speak-up and just follow orders. TINA – there is no other alternative. Its QUIT or QUITE, Their Way or Highway. Good that Mr Murthy (and gang) QUIT Patni an evergreen natural fallout of Speaking–Up(SU). SU in India is like Bungee Jumping (BJ) without any safety ropes/nets. Can please gear up Indian Youth (IY) for SU movement, macro-economically speaking Structural Changes to herald Paradigm Shift. Here is logistical wish list of rope/safety nets and gears, so that Indian Youth can Bungee Jump (BJ) into bandwagon of SU Movement. Reduce notice period (BONDED Labor) from 3 months to 3 working days, a hard choice SU or attrition. No need of reliving letter and experience certificate from previous company - ry stubs, form-16 and bank statement should suffice to Jump job after SU. No need of Character Certificate aka reference checks from ex-managers, the very 70 ton Gorillas and Draculas responsible SU-BJ. How about attorney life-line in US its Cash- Less – win the suit first fees later. House fetching rent of Rs 5k by thumb rule is worth 5*12*20 - nearly Rs 12 lakhs . Fired (unlawfully) IY in India gets Rs 12 lakhs settlement by US MNC. In US, unlawfully fired IY gets millions of dollars by Indian Employer. Ref ToI article– Pay techie Rs 12.5 lakh for sacking her, Karnataka labour department orders US-based firm. Please GOOGLE - Cl Action Suit Seeks $100 Million for Pregnancy Discrimination, Other Violations. Please set up the Frame Work (Eco-system) to facilitate Safe – Speak UP!
    Reply
  2. S
    Sonu Mudaliyar
    Dec 5, 2014 at 3:55 pm
    breaking english news :vishwagujarat/en/
    Reply

Go to Top