Quarterly Update
published on Jul 21, 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:
Q1 Performance “Solid CC growth, resilient margins”
Revenues were up 6.3% in CC to beating expectations
Management highlighted that “new software and software related services” launched since Q1 FY16 represented 9.9% of total revenues, also that these new higher margin offerings accounted for around $1bn of the incremental growth in this period.
Still expects to see a recovery in retail banking later this FY
Operating margin was kept flat y/y in spite of headwinds.
Guidance for full FY18 is reaffirmed. Infosys is applying a number of levers to maintain margins in the face of headwinds and increasing investments.
Progress in Automation/AI One of Several Factors Helping Push Revenue Per Capita
Utilization Up – But So is Attrition
Launch of Nia
Claims to have 160+ use cases for Nia, with engagements in 70+ clients.
Opening Four Onshore Development Centers in U.S., Plans to Hire 10k American Workers
Unexpected Resignation of Sandeep Dadlani
Has led to new appointments for Global Heads of Manufacturing Retail/Consumer Goods/Logistics verticals; no announcement as yet as o to new President Americas.