The three business units of Infosys – business process outsourcing, banking product, Finacle, and the domestic India market — are expected to deliver higher growth than the company’s overall average in the coming quarters after having posted a double digit sequential growth in the recently reported third quarter results.
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 India’s 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 company’s 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