Even as rival TCS created history surpassed the $100 billion mark to create history, Infosys CEO Salil Parekh has announced a 3-step strategy to transform the IT behemoth by 2021.
Even as rival TCS created history surpassed the $100 billion mark to create history, Infosys CEO Salil Parekh has announced a 3-step strategy to transform the IT behemoth by 2021. While the cut in margin guidance to 22-24% in FY19 came in as a disappointment according to brokerages, Salil Parekh is willing to take a hit on margins in order to preserve long-term growth. “To build the future Infosys, we have to make those investments now. If we don’t do that now, the real concern is that we won’t be relevant to our clients in the future,” he told Bloomberg in a recent interview.
Speaking at an investor meet held in Mumbai yesterday, Parekh said that announced a three-year plan to put Infosys back on the growth track. “This is a three-year transformation plan. In year one, we will stabilise the company and invest. In year two, we will begin to show momentum and in year three, we will accelerate growth,” he said. The CEOs focus is to expand its reach in providing digital services. While thew the company has reported $2.79-billion digital revenues (25% total turnover) at the end of last fiscal, Salil parekh is looking to become more relevant for the clients’ future to tap the estimated $160-billion worth market opportunity.
“We are best positioned to help clients navigate their journey into the future and take them to the next phase. Our clients are pushing us because they know we have the capabilities,” he told Bloomberg in the same interview.
Apart from digital transformation, Salil Parekh would alo ke looking to up-skill and re skilling of employees. “We will execute our strategy around the four pillars of Scaling our Agile Digital business which is today US$2.79 billion in revenue, Energizing our client’s Core technology landscape via AI and automation, Re-skilling our employees, and Expanding our localization in markets such as US, Europe, and Australia,” CEO Salil Parekh said after Q4 results.
With an aim to localise its staff, Infosys is building an off-shore talent pyramid primarily in the US and then in other geographies such as Europe, Australia. Notably, the company is hiring graduates with arts, economics and liberal arts background too, apart from software engineers to create a diverse set of talent pool, said Pravin Rao, chief operating officer, Infosys.