Infosys’ localization initiative pays off as Europe-based clients opt-in for price-competitive services that are aligned with their overall vision
Hosted at Infosys’ Design and Innovation Studio in London, the Infosys Leadership Forum provided attendees with a glimpse into how Infosys is taking an active role in shaping “digital Europe” from both a skills and capabilities perspective.
While North America remains Infosys’ main hub in revenue-generating opportunities, comprising 61.9% of Infosys’ total sales in 3Q21, Europe’s performance over the past several quarters, including the signing of the largest deal in company history with Daimler AG, highlights Infosys’ relentless execution around the pillars of its Navigate Your Next strategy. Localization is fueling much of this success as more than 70% of Infosys’ talent in Europe are local hires.
Infosys’ Europe sales increased 22.8% year-to-year in 3Q21, marking the third consecutive quarter of double-digit growth, a trend we believe will continue at least through the end of FY22 (March 31, 2022). Additionally, high-quality price-competitive proposals enabled by its large deals team and backed by a rightsized and right-skilled bench helped Infosys expand its share of large deals. Infosys has added two new clients within the $50-plus million category and five new clients within the $100-plus million category since 3Q20.
Infosys realizes the value of being local and continues to invest in regional resources and infrastructure, including the opening of a Cyber Defense Center in Romania and a Digital Innovation Studio in Germany as well as the acquisition of Czech-based ServiceNow shop GuideVision over the past couple of years. The company’s success in Europe is no surprise given regional clients have been warming up to outsourcing as they seek cost-efficient modernized IT infrastructures and business processes. Infosys’ ability to stay true to its core value proposition on the services supply side paired with its aforementioned investments in innovation, talent and portfolio offerings, including Infosys Cobalt, and ability to manage its partner ecosystem has set the stage for the company to expand regional market share.
Investments in environmental, social and governance (ESG) initiatives also help Infosys win regional clients’ mindshare as buyers increasingly seek external support to implement government-mandated decarbonization frameworks. As with any new technology and/or a framework, use cases provide invaluable benefit for all parties. According to Infosys the company became carbon neutral in 2020 — well ahead of many of its peers and partners — and we believe the company can use its own experience as a customer zero use case for enterprise buyers seeking to embark on their sustainability initiatives.
With Infosys already executing on its ESG 2030 vision centered on the theme of “Driving profit with purpose,” the company is also seeking to build trust in the circular economy by retuning its mindset and approach to balancing shareholder and stakeholder priorities, with the latter group increasingly challenging the status quo, compelling Infosys and its peers to pay closer attention to investing in portfolio, skills and partner offerings.
Daimler AG mega deal provides a use case around business transformation delivered at scale
Customer panels and use cases amplified Infosys’ value proposition during both the analyst and advisory meetings as well as the main parts of the leadership forum throughout the day. While this customer insight was relevant and connected to the theme of the event, a discussion around Infosys’ deal with Daimler AG stood out.
Infosys Leadership Forum Europe: Infosys held its first in-person forum after an almost two-year pause caused by the pandemic. The company also made the event available virtually, setting the stage for what might become the norm moving forward for such experiences. During the daylong event, thought leaders, government appointees, client executives, analysts and advisors listened to presentations, panel discussions and client stories centered on the theme Acceleration, Inclusion and Transformation. With ever-important topics around skills, digital transformation, sustainability and innovation, Infosys and participants had thought-provoking discussions punctuated by use cases and client stories that highlighted the company’s capabilities as well as its value proposition as being among the key players able to operate and execute in a post-pandemic world.