Infosys looks to accelerate growth in products

Infosys Ltd, keen on continued momentum in its journey of taking its products, platforms and solutions business from its current 5% revenue share to one-third of total revenue, is fuelling furthermore investments into this space and will before long launch offerings for a digital wallet and a digital marketing platform.

Digital wallet enables cash

A digital wallet enables cash and credit transactions on mobile phones. A product in this context is a licensable software application, based on Infosys' intellectual property. A platform is typically a hosted and managed system, where the IP can be as well owned by a partner or a client.

The firm has for long touted its intention of in the end taking this business to a third of its share, during bringing down the large business information research services practice from the current 65% share to a third. The remaining one-third will combine consulting and system integration.

Infosys chief executive S.D. Shibulal said in a recent interview that taking PPS to one-third of revenue will mean a 15% reduction in overall effort in terms of time and people deployed-a key factor in the traditional, so-called linear IT services revenue model.

The PPS revenue share of 5

The PPS revenue share of 5.1% largely comes from Finacle, Infosys' long-standing core banking offering, which had a revenue of $239 million in the December quarter. The $300 million of total contract value does not include Finacle.

Under a new structure in Infosys, each of its four businesses-banking, financial services and insurance; manufacturing; retail and life sciences; and energy and utilities-have a PPS unit "embedded inside it", Purohit said.

Cloud computing allows users to access software and applications hosted on remote servers and not on their own IT infrastructure, typically for a fee. A private cloud means a service provider uses specific IT infrastructure only for a particular client, during a public cloud means the same infrastructure is shared with other customers.

"Customers are looking for tangible touch-and-feel solutions which can generate quick business value," Infosys board member and US geography head Ashok Vemuri said in a recent interview.