Infosys CEO Vishal Sikka has said that while revenue growth from its top clients across verticals had stagnated in the past, the win rate in this segment has improved in the last quarter. At the JP Morgan Asia CEO-CFO Conference held in New York on Tuesday, Sikka said that during the first quarter of FY16 the revenues emanating from the top clients stood at 5.7%, higher than the company’s overall growth rate of 4.5%.
The Infosys CEO said that the numerous initiatives are being undertaken to improve the win rate among the top clients like better proposal writing, bringing in more consulting expertise etc.
On the ongoing pricing pressure in the IT services industry, Sikka said it is going to continue given the prevailing conditions of the sector. He felt the only way to combat the pressure is to augment people with software.
“The key to outperform the pricing pressure will be with software,” Sikka said, adding, companies who do not innovate in this area will continue to suffer.
On the growth rate of the company in FY16, the Infosys CEO said that they are sticking to the 10-12% guidance in US dollar terms on a constant currency basis
He felt that the company was moving into the right direction in terms of matching the industry growth rate for FY17. “In FY17, we will get back to industry growth rate,” he remarked. Infosys CFO Rajiv Bansal said its performance in the first quarter of FY16 showed that it is in line with industry growth rate.
Dwelling on the other aspects of the industry, Sikka said that there was an inevitable shift towards automation. Infosys has already undertaken over three dozens projects built on automation technologies and expects it to become more pervasive. “We expect that 70% of our infrastructure services work to be automated,” Sikka said.