The CEO of Indian software company Infosys believes the time has come for Big Tech companies to consider outsourcing their work. He says the as-a-service model is taking the world by storm, artificial intelligence is beginning to deliver, and 5G is coming to life around the world. But the key to all this is software. This year, the Bengaluru-based IT services exporter expects its revenue to grow by 19.5% to 20%, versus 16.5%-17.
The increase in spending on technology has created a huge demand for talent. Traditionally, Infosys has hired thousands of college freshers and trained them to be top performers. But the company has run into a few snags. In the third quarter, the company saw an attrition rate of 25.5%. Despite this, the firm continues to attract new talent and invest in its consulting business.
The CEO of Infosys says the company is planning to de-emphasize its push into platforms. The strategy called for one-third of revenues to come from these businesses. Although the company did not intend to sell its consulting business, the CEO said that it will pay less attention to platforms and focus more on its core labour arbitrage talent space. However, Murthy noted that the company will continue to invest in its traditional consulting business.
The CEO of Infosys is not a big fan of outsourcing and does not have a good track record in terms of managing the business. He has outlined several reasons why. The biggest reason is premium pricing. In the past, Infosys was able to command a high price per hour for its resources, but the market is much more competitive now. In an era where Big Tech is the norm, it cannot continue to charge such a premium for its services.
The company has been a leader in the digital services market for nearly 20 years. It has made massive leaps in digital infrastructure and employee engagement. During the past decade, Infosys also built a strong reputation in the consulting industry, where it competed against Big Tech and Google. Today, the firm has a market cap of $46.3 billion, and its market share is growing at a faster rate than that of the Big Giants in Silicon Valley.
The company’s rapid growth and profitability are also driving the company’s strategy for future growth. Its operating margins in the third quarter of the current fiscal were twenty-three per cent, while Cognizant’s was 15.4%. With such high-tech demands, the IT services giants have had to find ways to reduce their costs. This is where India comes in. While the tech industry has largely embraced this model, the global economy is also being revolutionized.
Unlike Big Tech, Infosys has witnessed much faster growth than Big Tech. This has resulted in a dramatic change in the industry’s pecking order. While the two companies have similar numbers, the latter has more money, and profits are growing significantly at a much faster rate than its rivals. It has also raised its guidance for its full fiscal 2020.
The CEO of the company has also credited the company’s growth to the continued demand for its highly skilled workforce. The company’s growth has been fueled by the increased investment in tech. Its CEO says the company’s accelerated growth has helped it differentiate itself from Big Tech. Its employees are called “Infoscions” and they know that Benching can hurt their career prospects.
The company’s growth is not merely a matter of a more efficient process. Its innovative culture has helped Infosys become synonymous with globalization. Its business model is based on globalization, which allows corporations to hire lower-cost workers around the world. Its business model is called a “global delivery model.” Its globalized approach has also divided the tech industry. US companies would hire highly-skilled engineers, while offshore workers would handle jobs that were easier to complete.