In the second quarter of the ongoing fiscal year, Infosys’ digital revenue (a large part of which is revenue from cloud services) was $2.2 billion, a growth rate of 43% year on year. The Bengaluru-based company’s overall digital revenue stood at about $7 billion in FY21.
In addition to its internal learning and development initiatives, Infosys is also strengthening cloud training programmes for client employees to crank up adoption of this offering, said Narsimha Rao Mannepalli, executive vice president, head of cloud and infrastructure solutions and Infosys validation solutions.
Mannepalli told ET that investments in building its own platform on top of its IT services management tool ServiceNow has helped the company tap larger segments and use cases within the technology investment cycle for clients.
According to HFS Research, Infosys leads the cloud service solutions market among Indian heritage IT service providers, though Tata Consultancy Services (
) is catching up.
“Infosys embarked on this digital transformation journey four years back, although our investments in the cloud predated that journey,” said Mannepalli. “The Covid-19 pandemic accelerated transformations in every business. The time-to-market for new solutions, new ideas, new products has come down. A new product introduction for BFSI clients, which used to take 8-10 months, is now rolled out in 2-3 months.”
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During the second quarter, the company said its integrated cloud offering – Cobalt – attracted engagements related to private cloud, hybrid cloud in partnership with the ‘Infra as a Service’ and Software as a Service players, leading to a significant impact on its large deal pipelines.
As of the second quarter, Infosys had over 300 industry templates across 30,000 digital assets within the Cobalt offering. In fact, as talent shortage continues to weigh on the larger technology ecosystem, Infosys is also doubling down on learning initiatives for clients, a move noted by analysts as well.
“Infosys has been relentlessly investing in its talent through training and reskilling. Infosys trains 5,000 hyperscale professionals each month,” said Phil Fersht, chief executive of HFS Research.
Mannepalli said an increasing number of customers have over the past few years been happy to let Infosys take over their talent or “re-badge” them. Infosys onboarded almost 2,000 employees through its Daimler and Vanguard deals over the past year.
“Talent is a critical factor for the success of these digital transformation projects. Our own digital learning platform has been useful in training, retaining and developing capacity. Equally, we also offer some of these to our customers in a scalable format as talent transformation is a big priority for them,” he said.
The growth in cloud and digital transformation engagements have been pivotal in the company’s decision to collaborate with SaaS platform ServiceNow in September, to include digital workflow management solutions for enterprise clients.
“Today, a number of our customers are using ServiceNow for managing engagements like HR operations and employee finance management, among others. It is targeting solutions beyond IT service management, such that we have built our own IP on top of the ServiceNow platform to manage entire client business functions on cloud,” he added.
