1. Vishal Sikka’s Infosys, bellwether of Indian It, sees return to top in two years

Vishal Sikka’s Infosys, bellwether of Indian It, sees return to top in two years

To come up with detailed comeback strategy in April

By: | Bengaluru | Published: February 12, 2015 1:03 AM

Infosys, India’s second-largest IT services exporter, expects to get back to industry leading growth in 18-24 months. CEO Vishal Sikka, at the Goldman Sachs Technology & Internet conference 2015 in San Francisco on Wednesday, said the firm will come out with a detailed strategy in April.

The IT major has not been able to outperform the industry growth projections given by Nasscom in the last two fiscals unlike its peers, TCS and Cognizant.The company has retained its revenue guidance of 7-9% for FY15, way below the industry benchmark.

Sikka on Wednesday said Infosys was committed to profitable growth and that he expected an operating profit margin of 25-28%. Under Sikka, the company recently revamped its operational structure by separating delivery and sales. This led to reshuffling of portfolios among senior management executives. Sikka said the realignment was done to make the company more focused and less fragmented. He also remarked that the move will make it more scalable on the delivery side.

Sikka said the company was preparing an agenda to renew all services on themes of automation, artificial intelligence and innovation to improve productivity. At the same time, it was planning to build a new platform for resolving problems of next-generation clients. Sikka reiterated that Infosys will continue to remain a services company and there were no plans to turn it into a software product firm.

On the high attrition level, the CEO said it was expected to come down in the next few months due to various employee engagement measures undertaken by the company.

“When I started, there was a lot of turmoil and many senior managers left. One of our first priorities was to stabilise confidence,” he added. Sikka said that one of the key measures undertaken by the company was to improve the metric of revenue per employee growth. “Slowly it is going up,” he said.

Infosys will also closely engage with a greater number of startup companies, from whom it expects more innovations to come. Sikka said the firm will also be interested in acquiring small innovative companies.

The IT major expects more projects to come under the fixed price model, a number that stands at 58% currently.

Sikka said Infosys was bullish on infrastructure management services and expected a lot of growth opportunities in the segment. The only industry facing an unusual burden was oil and energy, he noted.

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