Implementing a Comprehensive Strategy: Infosys Enhances Talent Development, Sales Efficiency and Profitability

While too soon to call it a trend, the combination of an uptick in sequential performance in Financial Services and record-breaking large deal wins in 2Q24 highlights Infosys’ relentless focus on execution and maintaining its position on the services supply side.

 

Infosys is not immune to the broader macroeconomic trends, but the company’s ability to recalibrate its portfolio and employee skills while maintaining strong client retention and new deal expansion positions it for accelerating performance once discretionary spend at scale improves.

 

Infosys Cobalt, Infosys Topaz and now Infosys Aster will continue to act both as the backbone of IT services modernization and as access points to generative AI (GenAI)-related opportunities. With many of its peers are pursuing similar strategies and poaching key Infosys executives to emulate success, the company needs to remain vigilant and maintain transparent communication with stakeholders to avoid client and talent confusion and secure its long-term success.
 

Are you curious about the performance of global systems integrators (GSIs) in 2023 and early 2024? Check out the below TBR Insights Live session for insights into the world of hardware-centric, legacy GSIs and what lies ahead for these vendors.

 

2Q24 Update: Infosys’ Corporate Strategic Objectives

Execute on ‘Navigate Your Next’ Strategy Via Improved Sales Efficiency, Increased Automation and Cost Rationalization

Developing digitally versed talent and using an integrated sales approach enable Infosys to target opportunities across core and new business areas. The company is investing in talent initiatives largely enabled by the Infosys Lex platform and centered on GenAI-enabled tools. Additionally, while investing in onshore, nearshore and offshore development and delivery centers provides opportunities for local talent to join the company, it also pressures Infosys to maintain service quality through training and development.

Become an AI-first Company

Broad-based portfolio investments in proprietary and partner-enabled solutions and frameworks, such as the launch of Infosys Aster, highlight Infosys’ efforts to establish trust and credibility within the ecosystem at a time when many of the company’s peers are also vying for client mindshare.

Reclaim Industry-leading Profitability by Investing in In-demand Portfolio Offerings and Global Delivery Model

Infosys’ operating margin improved on both an annual and sequential basis, to 21.1% in 2Q24, landing within the guided range of between 20% and 22%, bolstered by the benefits of ongoing cost-cutting initiatives, stabilized attrition and improving productivity. Using automation and GenAI for internal operations and sales management as well as client delivery will help Infosys improve its operating margin and meet its FY25 guidance of between 20% and 22%.