India’s second-largest IT company expects to drive digital and technology-led transformation for its clients, with demand for such services forecast to remain strong even amid global business disruptions.
“Corporate leaders are having to deal with complexities and challenges post-pandemic along with slowing growth, supply chain disruptions, soaring inflation, rapidly rising interest rates and fears of a recession. Yet, every one of these challenges presents tremendous opportunities to transition to new ways to gain market share,” non-executive chairman Nandan Nilekani said.
“Digital acceleration across industries is opening so many new doors for Infosys to explore,” said the 67 -year old cofounder at the company’s 41st annual general meeting, which was held virtually for the third year in succession due to the ongoing pandemic.
Nilekani’s comments are reflected in analysts’ views on future demand for technology services globally. Digital transformation spending is expected to continue even in the case of a recession in the US and Europe, Mrinal Rai, principal analyst at global IT research firm ISG, earlier told ET.
Pointing to Infosys clocking a decadal high of 19.7% revenue growth, in dollar terms, for the financial year 2022, Nilekani said the Bengaluru-headquartered company had also returned $3.1 billion to the shareholders during the year by way of dividends and share buyback.
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Renewed term for CEO
Lauding the role of CEO Salil Parekh in delivering “industry-leading performance for the company,” Nilekani highlighted the
reappointment of Parekh for a further period of five years.
“It is in the interest of Infosys and stakeholders to secure continuity and stability of the current leadership,’ he said while pointing to Parekh’s “proven track record of driving digital transformation for enterprises, executing business turnarounds and managing acquisitions.”
The 57-year Parekh is set to extend his run as the longest-serving non-founder CEO of Infosys, which clocked $16.3 billion in revenue for the financial year 2022.
Addressing the gathering, Parekh noted that Infosys has won 94 large deals worth above $50 million in the last 12 months totalling $9.5 billion, which will drive growth in the near term.
The company signed large deals worth $14.1 billion in the year-ended 2021. It also added six clients with over $100 million deals, taking the total number to 38 clients.
The Bengaluru-based company shared five strategic elements to chase growth—scale cloud business, continue intensity in digital, accelerate next-generation seeding with the expansion of its Europe business and build capabilities in new technology areas like metaverse and Web 3.0.
In addition, this new strategy was unveiled at an analyst meeting last month. It also includes a focus on advanced automation and modernisation as well as importance to people (employee) care and their career development.
“We see good opportunities in the digital and cloud spaces. As a company we are well positioned, and we can continue to gain market share and create value for all our stakeholders,” Parekh said at the meeting.