Quarterly Update
published on Nov 20, 2017
Report Overview:
NelsonHall’s Quarterly Update on Infosys provides a snapshot of developments at Infosys in the last quarter.
Who is this Report for:
NelsonHall’s Quarterly Update on Infosys provides a snapshot of developments at Infosys in the last quarter. It accompanies NelsonHall’s more comprehensive Key Vendor Assessment program. Both programs are designed for:
- Marketing, sales and business managers developing strategies to target service opportunities within the BPO/IT Services markets
- Sourcing managers monitoring the capabilities of existing suppliers of IT outsourcing services and identifying vendor suitability for IT services
- Consultants advising clients on vendor selection
- Vendor marketing, sales and business managers looking to benchmark themselves against their peers
- Financial analysts and investors specializing in the BPO/IT services sector.
Scope of this Report:
The report provides a quarterly update on Infosys.
It accompanies NelsonHall’s Key Vendor Assessment program which looks at Infosys’ IT and BPO offerings, capabilities, and market and financial strengths, including:
- Identification of the company’s strategy, emphases and new developments
- Revenue breakdowns
- Analysis of the company’s offerings and key service components
- Analysis of the profile of the company’s client base including the company’s targeting strategy and examples of current contracts
- Analysis of the company’s strengths, weaknesses and outlook.
Key Findings & Highlights:
Q2 Performance: quarter marked by turbulence ...
Q2 was marked by the sudden resignation of Infosys’ CEO. Dr Sikka’s departure sparked subsequent wholesale changes to the Board. Infosys now has an interim CEO, former COO UB Pravin Rao, and a temporary Chairman, Nandan Nilekani. Both are highly respected. The process of selecting the next CEO has begun
Revenues growth was slightly below guidance, and full year guidance has been trimmed. Management highlighted that “new software and software related services” launched since Q1 FY16 represented 9.4% of total revenues.
Operating margin was in the middle of the target margin range though down slightly y/y
.. And a quick strategy refresh
On the surface, there appears to be no difference from the strategic direction that Infosys was following under Sikka, but there are some changes in nuance which the QU looks at.
Second U.S. onshore delivery hub announced
Record Utilization– But Attrition Also Up