Vendor Analysis
published on Sep 08, 2017
Report Overview:
This NelsonHall vendor assessment analyzes Infosys' offerings and capabilities in SAP HANA and S4/HANA services.
Who is this Report for:
NelsonHall’s SAP HANA and S/4HANA Services vendor assessment for Infosys is a comprehensive assessment of Infosys’ SAP HANA and S/4HANA services offerings and capabilities designed for:
- Sourcing managers monitoring the capabilities of existing suppliers of IT services and identifying vendor suitability for SAP services
- Vendor marketing, sales and business managers looking to benchmark themselves against their peers
- Financial analysts and investors specializing in SAP services sector.
Scope of this Report:
The report provides a comprehensive and objective analysis of Infosys’ SAP HANA and S/4HANA service offerings, capabilities and market and financial strength, including:
- Analysis of the company’s offerings and key service components
- Revenue estimates
- Identification of the company’s strategy, emphasis and new developments
- Analysis of the profile of the company’s customer base including the company’s targeting strategy and examples of current contracts
- Analysis of the company’s strengths, weaknesses and outlook.
Key Findings & Highlights:
Headquartered in Bangalore, Infosys was founded in 1981 in Pune by a group of seven programmers. It became a public limited company in India in June 1992 and was listed on NASDAQ in 1999, having set up development centers in several Indian cities to serve the global market.
Since his arrival in 2014 as Infosys' CEO, Dr. Vishal Sikka has shared his long-term vision, consistently speaking of the drive to both “renew the core business”, and “innovate into new businesses”.
Renewing the core business includes the following:
- The application of automation, robotics, and AI in BPS services, applications services, and infrastructure services. In recent years, there has been an acceleration of effort to reduce the cost in these areas including through its proprietary AI platform, Nia
- An increased focus on product engineering services in IoT and areas such as predictive maintenance, machine learning, and intelligent and adaptive systems
- The application of design thinking (DT) in consulting services.
Innovating in new businesses, where Infosys is seeking to differentiate in its offerings portfolio and elevate its client relationships, includes the following initiatives:
- New offerings, many of which are platform based
- A $100m tech start-up investment fund, announced in August 2014 and subsequently increased to $500m.
Infosys has had a relationship with SAP since 1997. It became a Global Services Partner in 2008 and is also a Global Strategic Partner, an Application Development Partner and an Outsourcing Operations Partner. Infosys is also an SAP S/4 HANA value assurance partner and certified on SAP S/4 HANA operations. It estimates that it has ~400 SAP clients and ~14.8k SAP skilled resources.
To expand its SAP, HANA, and S/4HANA capabilities, Infosys has made the following acquisitions:
- Lodestone, in 2012: headquartered in Switzerland, Lodestone was founded in 2005 (the founders' heritage was in PwC and IBM). It had 850 employees including 750 SAP consultants, and 2011 revenues were ~$200m across ~200 clients, concentrated in the life sciences and automotive sectors, with ~15% of revenues coming from the insurance sector
- Panaya: in 2015: Infosys' second largest acquisition since its purchase of Lodestone. Founded in 2005 (formerly known as ChangeSoft Technologies), Panaya is based in Ra’anana, Israel and has ~150 employees. Its flagship CloudQuality suite automates the assessment and migration of SAP environments.
Having seen clients take multiple paths to adopt HANA and S/4HANA, Infosys has therefore built offerings that encompass the consulting activities to develop a plan for migration and offerings, to support multiple adoption paths. It is also seeing clients using HANA and S/4HANA to address broader landscape transformation.
Infosys has ~200k IT services FTEs, with ~14.8k SAP skilled employees. Of these, ~2,200 possess HANA and S/4HANA skills today, with Infosys targeting to grow this team to ~4,200 by the end of FY17.
Globally, Infosys has 100 delivery and development centers, of which ~60 have SAP skilled resources.