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Infosys Technologies
Infy Analyst Day rings a
positive tone
„Infy analyst day undertone one of “Cautious optimism”
At its analyst day meet, Infy management sounded optimistic while being cautious
of the macro headwinds. No project cancellations or pricing cuts seen so far, but
it’s early days. Closely monitoring lateral hiring but does not see the need to push
out joining dates of freshers. Early signs of success of recent reorg. Key theme
how Infy 3.0 will ensure sustainable growth. Would position Infy as a consulting
led 'business solutions' provider with global delivery & a suite of industry focused
products/platforms. This is key for scalability & to prevent commoditization.
"Aug 2011" unlike "Sep 2008", though some push outs likely
In management's view, unlike 2008, clients have already built in macro
uncertainty in 2011 budgets and hence knee jerk reactions to spending appear
less likely. However, there could be some delays in decision making in areas of
discretionary IT spend e.g. in new ERP rollouts. Pricing largely stable, with
pressure in commodity work offset by better pricing in ‘transformational’ projects.
Telecom: Light at the end of the tunnel?
While growth trend for telecom continues to be muted, the worst is likely behind in
our view, with ramps in 2-3 recent deal wins. Infy is also working on diversifying
from wireline and growing footprint in wireless and cable, and also tapping
emerging markets. Financial services, energy, retail and manufacturing should
benefit from regulations, emerging markets and business transformation related
spends. However, clients taking decisions phase by phase given the macro risks.
Re-organization, showing early signs of success, in our view
Two positive trends we perceive from recent re-org (1) vertical heads likely have
more flexibility in deal structuring and (2) Early signs of new go-to market helping
win sole sourced deals due to a consulting approach and integrated solutioning.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Infosys Technologies
Infy Analyst Day rings a
positive tone
„Infy analyst day undertone one of “Cautious optimism”
At its analyst day meet, Infy management sounded optimistic while being cautious
of the macro headwinds. No project cancellations or pricing cuts seen so far, but
it’s early days. Closely monitoring lateral hiring but does not see the need to push
out joining dates of freshers. Early signs of success of recent reorg. Key theme
how Infy 3.0 will ensure sustainable growth. Would position Infy as a consulting
led 'business solutions' provider with global delivery & a suite of industry focused
products/platforms. This is key for scalability & to prevent commoditization.
"Aug 2011" unlike "Sep 2008", though some push outs likely
In management's view, unlike 2008, clients have already built in macro
uncertainty in 2011 budgets and hence knee jerk reactions to spending appear
less likely. However, there could be some delays in decision making in areas of
discretionary IT spend e.g. in new ERP rollouts. Pricing largely stable, with
pressure in commodity work offset by better pricing in ‘transformational’ projects.
Telecom: Light at the end of the tunnel?
While growth trend for telecom continues to be muted, the worst is likely behind in
our view, with ramps in 2-3 recent deal wins. Infy is also working on diversifying
from wireline and growing footprint in wireless and cable, and also tapping
emerging markets. Financial services, energy, retail and manufacturing should
benefit from regulations, emerging markets and business transformation related
spends. However, clients taking decisions phase by phase given the macro risks.
Re-organization, showing early signs of success, in our view
Two positive trends we perceive from recent re-org (1) vertical heads likely have
more flexibility in deal structuring and (2) Early signs of new go-to market helping
win sole sourced deals due to a consulting approach and integrated solutioning.
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