IT major Infosys reinventing business model to become digital-first company

BENGALURU: Infosys chairman Nandan Nilekani and CEO Salil Parekh are focussing on reinventing the business to make the IT firm a digital-first company. Speaking at a media meet on Tuesday, Parekh said that the company is aiming to drive more than 50 per cent of its revenues from digital services especially after the segment witnessed a 25 per cent growth YoY in the last quarter (Q2 FY21). 

Currently, 47 per cent of the revenues of the IT major comes from digital services on the back of huge demand from the enterprises for hybrid cloud, cyber security and remote work services.

The IT infrastructure modernisation (digital transformation), according to Parekh, will continue to drive the business in the coming quarters, as a result of which the company has witnessed a steady deal momentum in the quarter ended December with addition of new clients. 

​Even as Covid-19 disrupted its businesses world over, Infosys CEO said that there has been no pricing pressure from the client side on various deals. Among several deal clinches during the pandemic, Infosys signed a contract with a US investment firm Vanguard for a reported $1.5 billion to digitise their record keeping business. 

“Pricing has held up quite well due to acceleration in IT  infrastructure modernisation. IT systems are now driving growth for clients and not just digital transformation and business optimisation, so there is no pricing pressure. The real driver has been the rise in tech spend by organisations. We, at Infosys, helped our clients undergo this transformation due to the investments made 2-3 years ago in cloud, cybersecurity and talent upskilling allowing us to become more relevant,” Parekh added.