Cash-rich Infy looks for new-tech buys | business | Hindustan Times
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Cash-rich Infy looks for new-tech buys

business Updated: Sep 06, 2012 23:24 IST
Manu P Toms

Cash-rich Infosys, with its back to the fall after troubled quarters this year, is looking for acquisitions aided by its $4 billion (Rs 22,400crore) cash chest to help "step jumps" into new technology areas that could push growth. Infosys may look at Europe and the US to buy out IT firms or technology solutions that fits its growth ambitions.

Infosys on Thursday showcased the company's recent initiatives at an event to highlight its emphasis on emerging services that bet on cost-effective software platforms that can be shared by customers, mobile applications that make things easier for technology services and cloud computing initiatives that bet on Internet-based services.

These include a "cloud ecosystem hub" which Infosys chief executive SD Shibulal said managed to eliminate 1,000 servers and saved 16,800 tonnes of environmentally harmful carbon-dioxide emissions. This is expected to contribute 6.3% of company revenues this financial year, he said.

"We are looking at inorganic growth in products, platforms and solutions,” Shibulal told reporters. “To grow from 6.3% to 33% obviously needs some step jumps.”

Besides the cloud hub, Infosys has launched other products such as 'Brand Edge' that helps companies reach out to digital customers individually and 'Trade Edge', a mobile application that helps consumer goods players reach out to the "last mile" shopkeeper faster.

Infy has employed 16,000 people — more than 10% of its total workforce — for the new products and platforms segment.

Facing criticism of underperformance for having missed revenue expectations for the past two quarters, Infosys hopes the new initiatives will put it on the high growth path. "May be there are short term challenges. But I am very confident we are on the right path," said Shibulal.

Infosys now focuses on working with clients to fine-tune its IT products. "We want to remain relevant to our customers by co-creating products with them," said Sanjay Purohit, senior vice-president, Infosys. . "In the last 12 to 18 months we have done a dozen co-creations.”