Infosys plans to increase investment and expand digital share


Infosys is planning to increase digital revenue from $2.8 billion in FY18 by investing more and climbing up the learning curve. The company wants to increase the share of digital as it is fast growing and the market size is estimated to be around $180-200 billion. It is focused on automating its traditional services and teaching its employees new skills for which it has put aside $10 million in employee bonus pool. Another focal point is on localising the Australia, UK, and US markets by hiring new employees and training the existing ones, and boosting its sales strategy to get more number of high value deals.

Infosys Logo

The workforce of Infosys has grown by 1.9% in proportion with 7.2% increase in revenue in FY18. Thus, resulting in 6% increase in revenue per employee ($54,600) from the first quarter of FY18. Given the transformative path taken by the company, it can be said that the strategy/plan created by the former CEO is being followed albeit with some modifications made by Mr. Parekh. Infosys had acquired Skava in April 2015 for $120 million and Panaya in February 2015 for $200 million which were then sold due to negligible contribution from the both businesses.

As on 18 March 2018, Infosys has Rs.31,765 crore cash equivalent. Shareholders can rejoice a hefty payout as the board is retaining the policy of returning a maximum of 70% of the free cash flow and also paying up to $2 billion in FY19 as a special dividend of Rs.10 per share. The method by which to disburse the remaining Rs.10,400 crore is yet to be decided. Infosys has recently acquired WongDoody Holding Company, Inc. which is a US-based digital creative and consumer insights agency.


Please enter your comment!
Please enter your name here