Infosys and manufacturing: Technology prowess, low-cost presence and innovative offerings

Deal wins and investments in manufacturing suggest Infosys is anticipating a rebound in the vertical

With COVID-19 disrupting global supply chains and forcing participants to seek alternative channels to either reduce transaction costs by leveraging blockchain or transform IT infrastructure by migrating applications to cloud to offset technical debt and diminish financials pressure, some vendors have had the opportunity to gain a prime position. This includes Infosys, which has technology acumen and a low-cost presence and continues to go to market by industry vertical. During the first quarter of 2021, Infosys capitalized on these market dynamics, most prominently within the manufacturing vertical.

Infosys’ manufacturing sales declined significantly throughout 2020, with sales as a percentage of total revenue sliding 50 basis points to 9.5%, on average, in 2020 compared to 2019. However, in 1Q21 the company experienced strong momentum, illustrated by several deal wins, including with Siemens Gamesa Renewable Energy for SAP Business Suite 4 HANA (S/4HANA) implementation and with Johnson Controls to modernize the company’s smart global warranty solutions using the S/4HANA-ready SAP Fiori platform. Additionally, Infosys tested new ways to interact with clients to maintain trust and stickiness. The company also deployed Infosys Meridian, a collaboration platform that enables virtual events, including a four-day dealer engagement forum for Toyota Material Handling North America, which has been a client since 2018.

As COVID-19 continues to impede high-touch consulting opportunities and as auto shows — the main channel for the automotive community to interact — have essentially ground to a halt, testing innovative ways to interact with clients will benefit Infosys, provided the company captures feedback and applies lessons learned. Further, Infosys added $1 million to its 2016 investment of $1.6 million in the drone startup ideaForge as Infosys tries to diversify its manufacturing addressable market. Lastly, Infosys partnered with FourKites, gaining access to real-time tracking and visibility solutions and bolstering its supply chain capabilities, a necessary move as the company seeks to generate ongoing revenue growth in the manufacturing vertical.

Publishing in June, TBR’s latest IT Services Vendor Benchmark will include special detailed analysis of the changing ways IT services vendors are addressing new demands and digital transformations within the manufacturing sector.

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