5 take-aways from Infosys turn-around story

MUMBAI, INDIA: Infosys, which has reported slow growth for past few quarters, returned to its high growth path, curtsey new strategies and operational moves initiated by Vishal Sikka, the company’s new CEO. We list five of the key mantras.

1. New strategy: Hired about a year back, the former SAP executive, Vishal Sikka encouraged out of box thinking within the organization. Infosys bet on newer technologies such as automation, open source, digital and artificial intelligence to regain ground lost.

"We are seeing the impact of initiatives taken over the last three-four quarters on technological and operational fronts, resulting in highest revenue growth of seven percent in 15 quarters and volume growth of 5.4 percent in 19 quarters, in first quarter of this fiscal," he said at a press meet.

2. Customer satisfaction: In a communiqué to the BSE, Sikka mentioned that Infosys’ efforts in redesigning its clients' experience and the company’s widespread adoption of innovation, both in grassroots and breakthroughs are starting to bear fruit in large deal wins and in the growth of large clients.

Infosys added 79 clients in April-June, taking its total to 987.

3. Ambitious target: Infosys is on track to achieve a revenue target of $20 billion it had set for 2020. Sikka said though the target was ambitious, it was possible through organic and inorganic growth and innovation in products and services.

4. M&A: Infosys intends to achieve $1.5 billion revenue through mergers and acquisitions and grow in double digit (13-14 percent) annually over the next five years to touch $18.5 billion, Sikka mentioned during a press conference.

5. Attrition: Staff attrition declined to 14.2 percent, from 23.4 percent the previous year.

Furthermore, the company plans to hire more techies on campus and off campus as per its growth strategy and reverse the attrition rate.

"It is interesting to note that Infosys is able to address major paint points like arresting the flux in the system with more stable senior management. We see progress in the market share compared to last three quarters. It has also improved the cost structure, which is reflecting in the utilization rate," said Thomas George, head of CMR.

Hopefully the acquisitions like Panaya and Kallidus will help them to capitalize the digital technology opportunities in coming quarters, said he.