In a thousand-word letter addressed to employees on Thursday, Infosys CEO Vishal Sikka asked them not to get distracted by the ongoing speculations regarding the company even as he invoked a popular number of an English rock band, The Wire, called Eardrum Buzz.
“As we head into the second half of Q4, let us keep a sharp focus on the execution of our strategy. Let us not get distracted by media speculation that is designed to stir up gossip or rehash old rumors or speculate on the unknowns, around visas, or anything that questions our commitment to governance, integrity and values, in order to generate headlines and create, in the words of The Wire, Eardrum Buzz. There is no second-guessing our deep commitment, passion and dedication to transforming this great company, even within the unprecedented new context that we find ourselves in,” he said.
The lengthy e-mail by Sikka accessed by FE, has outlined the broad trends the IT industry has been facing and how the company is addressing these challenges even while keeping in line with market expectations.
“Our revenue growth which previously underperformed the industry growth by 50% approximately two years ago, is now in line with overall industry growth, and we have held margins through operational efficiency improvements and automation benefits,” he said.
Also Watch:
According to Sikka, the company is looking at a massive transformation and an unprecedented transition of the services industry. “Our strategy remains clear – we will focus on delivering higher value services, on doing things that our clients themselves could not do, nor what any software package on its own could do,” he said.
This would mean inculcating the latest advances in technology including embracing and leveraging AI. “We will create a massive movement in the services industry,” he said.
The Infosys CEO also noted that over the last two-and-half years the company has bridged the margin deficit against others in the industry which also included massive reduction in attrition and doubling our large deals. “I challenged everyone that we should not miss the point on innovation, that it has to be about the greater value, not just doing something incrementally for the sake of doing it,” he said.
The letter also states that Infosys’ cash flow generation continues to be amongst the strongest in the industry. Its new software and services like Mana, Skava, Edge, Panaya have also seen tremendous growth.
This segment generates more than $110 million in quarterly revenue, from $22 million in Q2 FY15.