Infosys Technologies is banking on products, platforms and innovation to drive revenues by developing smaller products with small gestation periods compared with its flagship banking product Finacle.
The company derives 8.3% of its revenues from product and platform services ? the least among the three services namely ? business operations which contributes 60% while the share of consulting and system integration stands at 31.8%.
?Products and platforms are our new focus area and Infosys 3.0 is all about innovation. Hence, we are not developing big products like Finacle but smaller products with grater relevance,? said Chandrashekar Kakal, head ? enterprise solutions, Infosys Technologies.
The new-found focus is because the IT major is restructuring its portfolio into three large-service offerings ? business operation service, consulting and system integration service and products and platforms. Moreover, the firm has also realigned its verticals into financial services and insurance, manufacturing, energy, and the last being retail, CPG and logistics.
The IT giant reported a 15% increase in net profit for the first quarter ended June 30, 2011, at R1,722 crore from R1,488 crore in the corresponding quarter last year while the profit dipped 5.3% sequentially. Revenues at R7,485 crore, were up 20% year-on-year and 3.2% quarter on quarter.
For innovation, Infosys is looking to file more patents besides filling up senior positions in Infosys Labs, the research arm of the company. Incidentally, Kakal himself will soon be taking over the business operations service which is about 60% of the revenue.
?Our focus area continues to be on all the three areas which are relevant for clients ? business operation services, transformation and innovation. Also, globalisation of verticals is on the cards which means that one unit will focus on one industry group,? he added.
The Finacle product group has a headcount of 6,800 while Infosys Labs currently has a strength of 600 and Kakal explained that each industry vertical will come up with its own products and processes as not all innovation will happen in the Infosys Labs.
