DNA Money Edit: Infosys strategy to kick off new innings

Infosys's strategy in digital, sales, talent re-skilling and localisation gives the Indian IT behemoth a perfect base to kick off its new innings. The strategy is geared towards building a services-centric business model, not in contrast to the one that was being implemented by the previous leadership. The three-year roadmap that is meant to accelerate growth has drawn several accolades already. The thrust remains on artificial intelligence and digital. It has also kept an increased focus on expanding local talent base and re-skilling staff to reap long-term benefits. According to the analysts, the second largest IT-services firm is a stable top management as the execution of this vision is key to the organisation.

Infosys had said it expects revenue for 2018-19 to grow in the range of 6-8% in constant currency terms and 7-9% in US dollar terms. Earnings before interest and tax (Ebit) is likely to grow 22-24% for 2018-19 as compared to 24.3% in 2017-18. But the fourth-quarter results had failed to enthuse investors.

According to CEO Salil Parekh, Infosys has to sacrifice profit margins now by investing in advanced technology and skills in order to capture the opportunities going forward. It is important to make those investments to build the future Infosys.