BENGALURU : The momentum of the Infosys Ltd agreement has been steady and strong during the third quarter ending in December, typically a seasonally weak quarter for IT companies, said Salil Parekh, CEO and MD on Tuesday.
The quarter ended December is considered a seasonally weak quarter due to the holiday season in key geographies such as the United States and Europe.
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“Many of the big deals are new digital transformation projects … while decision making has progressed at about the same rate as Q2, the intensity of customer connection has increased with everyone working remotely using video platforms. “, said Parekh.
In July, Infosys won a multi-year digital transformation deal from US investment firm Vanguard. The deal, set at around $ 1.5 billion, is one of the largest ever for the company and an indication that spending on digital technology is on the rise.
The company’s digital business grew 25.4% from last year and contributed 47.3% to revenues for the second quarter ended September. Parekh said the contribution could increase to 50% in the coming quarters.
Demand for digital offerings like the cloud and cybersecurity, which exploded during the pandemic, are critical growth areas for Infosys.
As part of its strategy to accelerate cloud business, Infosys launched Cobalt, its integrated services, solutions and platforms that span the cloud to help customers build cloud-first capabilities in a secure, innovation-driven environment.
To enable growth in its key areas, Infosys is also focusing on employee retraining in various digital areas.
“Learning is an extremely important area that becomes the foundation for all of our employees who are building their futures,” said Parekh.
He said the pricing environment is stable as there is a “huge appetite” for technology investment among customers, who are using digital technologies not just for process improvement but to drive growth. “At the moment, we have not seen any unusual levels of price pressure.”
From an industry perspective, Infosys President Nandan Nilekani said the “consumerization of IT”, which refers to the impact that consumer-originated technologies can have on businesses, has led to increased cloud adoption. big data, artificial intelligence (AI) and cyber security among customers.
Once the covid-19 pandemic is over, Infosys will consider bringing its employees back to the offices to build “social capital,” Parekh said. However, the back-to-office model is likely to be hybrid and the flexibility of remote working should continue.