India’s second-largest software services provider is seeing increased appetite among its clients for investments toward technology to drive growth as Covid-19 accelerates digital adoption.
“It’s not just about process improvement or cost efficiency, but also directly impacting end-customers, and there we see tremendous appetite for investment,” Salil Parekh, chief executive officer at Infosys Ltd., said during its media day event on Tuesday.
Over the past few months, Parekh said, the firm has seen increased speed at which all its clients are adopting digital and the deal momentum in the ongoing quarter is steady and strong, besides the usual seasonality impact. Pricing pressure, according to him, has held up quite well, and many of the company’s large deals are new digital transformation projects.
Infosys, which saw its digital business grow 25.4% year-on-year and contributed 47.3% to its total revenue in the quarter ended September, now expects the segment to account for more than half of its top line in the next few quarters.
The demand for digital offerings like cloud and cybersecurity, which is now seeing increased interest among clients, according to Parekh, is critical areas of growth for Infosys. The real question, he said, is how quickly the company is able to work with the clients.
“All the investments made two to three years ago [in] cloud, cybersecurity allow us to be more and more relevant for our clients. We see the client environment more positive going ahead,” Parekh said.
On the Covid-19 vaccine plan, Parekh said the firm is in discussion with various jurisdictions for its vaccine management cloud solution—that can enable a government to manage distribution of the vaccine, including campaign management, citizen registration, prioritisation, provider enrollment and supply chain visibility, among others—developed by its subsidiary Simplus. He, however, did not provide further details.