Work from Home, Digital and Management Solutions: How Infosys reinstated Growth while Other IT firms are Struggling!

Among the IT majors in India, Infosys has emerged as the first company to reinstate its revenue for the financial year 2021.

The company guided 0-2 percent growth and the operating margin is estimated to be at the range of 21-23 percent. While peer IT Wipro has withdrawn from offering any guidance, it’s guidance is quarterly. Infosys’s guidance on the other hand, is annual.

The company has witnessed a huge upsurge in demand within the digital regimes such as cloud, cybersecurity, automation, and so on. “We announced landmark digital engagements with Vanguard for record keeping services. This, coupled with our strong Q1 result, gives us a powerful foundation for the rest of the year,” said CEO Salil Parekh.

“Regions such as the US and UK are still emerging from the pandemic. In India, the state of medical emergencies are still not fully known. Not everything is completely clear in terms of future horizons,” Parekh added.

“However, what we have learnt in Q1 and the ongoing strong client connects is that the strength of our franchise is coming through clearly. With that we reinstate our guidance,” he said.

Further, the company has also signed deals worth $1.74 billion for Q1 FY21. Recently it also singed a large contract in the U.S. which is pegged over $700 million.

Speaking of the strategical approach the company is undertaking, Parekh explained, “It is being much more aligned to what our customers are looking for and make sure we have those capabilities to provide them the right services. That’s the approach.

“One of things we put in place really is how do we want to drive digital. The reason is that this is where clients are making the biggest changes. That is the transformation journey we are embarking upon.”