Infosys confident of reaching FY16 revenue target

Infosys, India’s second-largest information technology services company, on Thursday said it was comfortably placed to achieve revenue growth guidance for 2015-16 on a better deal pipeline and increasing interest in its offerings.

Speaking at a conference organised by investment advisory firm Cowen & Company, Vishal Sikka, chief executive officer and managing director of Infosys, said recent initiatives had started yielding dividends.

“We have done a significant amount of work in improving the operational efficiency in the company in terms of bringing consulting as the tip of the sphere for the whole company; around better managing the top 15 accounts directly from the office of the CEO; and centralising the way we do proposals and strategic sales and bid RFPs,” Sikka said in New York.

“We have seen an improvement in the (deal) pipeline, so we feel confident about (achieving) the 10-12 per cent growth at constant currency this year,” he said. “Many of the effects of automation and next-generation works as well as the acquisitions we have made will start to kick in towards the second half of this year,” he added.

After assuming charge, Sikka has taken a number of strategic initiatives. The company’s performance in the quarter and financial year ended March, however, was disappointing. Sikka said the goal of reaching $20 billion revenue by 2020 was feasible with the new strategy. Of the $20 billion, he expects 10 per cent from new areas and $1.5 billion from acquisitions. The remaining $16.5 billion would come from renewal of existing services. In 2015-16, the company reported a revenue of $8.71 billion.