This has been done as it looks to ramp up revenues from new technology areas. Design thinking refers to solving traditional tech problems using newer, different and innovative methods. The company, which has set an aspirational goal of achieving $20 bn revenue by 2020, is betting on new services like design thinking, solutions in artificial intelligence and intellectual property-led businesses to contribute at least 10% of Infosys’ revenue by then.
This is to develop a financial cloud solution that will enable banks globally to accelerate digital transformation while keeping technology costs under control. Infosys Finacle is a part of EdgeVerve Systems, a wholly owned subsidiary of Infosys. The highly available platform will allow customers to run Finacle suite of applications on a private cloud network, delivering considerable performance, maintenance and total cost of ownership advantages.
RBS has cancelled its plan to separate and list a new standalone bank Williams & Glyn and instead will pursue other options for the divestment of this business. The bank had awarded a five-year 300 mn Euro IT contract to Infosys and IBM for W&G. The move is likely to hit 3,000 Infosys employees and impact revenues for the year by about $40 mn to $50 mn.
This happens as it looks to rein in rising attrition that stood at 21% in the April-June 2016 quarter. The company is not unduly concerned about the jump in attrition, which read 17.3% in the March quarter and 19.2% in the year-ago period. ESOPs allow employees to own equity in the company, which is seen as a morale booster for them.
It stood at Rs 3,436 Cr in the June quarter of 2016-17 against Rs 3597 Cr in the March quarter of 2015-16. The IT giant had reported Rs 3028 Cr net profit in the corresponding quarter a year ago. Infosys cut its revenue guidance to 10.5-12% in constant currency terms for 2016-17 from 11.5-13.5% estimated earlier.
This is from 113 in FY15 to 54 in FY16. The huge fall in Infosys’ crorepati count can be attributed to a large number of bonuses which the company paid to its employees in the year 2014-2015 to retain them. The company, which is also the second largest software exporter, has shown a jump in net profits for the quarter ended March 2016.
This includes a basic salary of $906,923, and $6.48 Mn in bonus and incentives. $51,198 in amount accrued for long-term benefits. In 2014-15, Sikka took home a package of Rs 4.56 Cr. In August last year, Sikka was brought in to turnaround the company, a strategy that has worked well for the Bengaluru- based firm.
The zone will be spread over an area of 4 hectares. The decision was taken by an inter-ministerial Board of Approval, headed by Commerce Secretary Rita Teaotia, at its meeting on April 28. The Board also granted more time to as many as 20 developers to complete their projects. That include Mayar Infrastructure Development for a biotechnology SEZ in Haryana and Wipro for IT SEZ in Karnataka.
Infosys co-founder S Gopalakrishnan today launched a new app ‘itihaasa’ that chronicles the “fascinating journey” of the Indian IT industry since the 1950s. ‘itihaasa’ is one of the largest chronicles of its kind with 600 videos featuring 44 technology stalwarts. The app follows the installation of the country’s first modern computer in 1955 to crystal gazing on Indian IT in 2040, he added. The app contains 600 short videos, over 37 hours of footage, 350 archived photographs and articles and easy browsing with 12,000 tags.
Asserting that employee attrition had reduced in the fourth quarter of 2015-16, COO UB Pravin Rao said the company was able to retain more employees by increasing engagement with them all through the year. Though the company made a gross addition of 9,034 people in fourth quarter including 5,266 laterals, net addition was only 661, as 8,373 people left, taking the total headcount to 194,044 by fiscal-end, as against 193,383 quarter ago and 176,187 year ago.