Infosys Ltd. (INFY) has been reaping the benefits of holding a premier position in the IT and consulting industry. The company has also been undertaking restructuring initiatives while pursuing strategic collaborations in order to strengthen its core competencies.
Infosys has realigned its business portfolio to heighten focus on enhancing client relationships, productivity, market share and creating service differentiation through a culture of innovation and agility. Further, the company is leveraging its clients’ performance by utilizing its proprietary Global Delivery Model. The recently reported third-quarter results reflected strength, driven by solid volume growth coupled with increased productivity levels and utilization rates.
Vishal Sikka, the current CEO of Infosys, has taken initiatives like ‘design thinking’ to enhance the training and knowledge base of its employees. Furthermore, in its efforts to drive growth, Infosys has expanded its innovation fund to $500 million from $100 million, so as to create a global ecosystem of strategic partnerships by investing in innovative firms.
However, the prevalent currency volatility, especially given the strengthening U.S. dollar, can weigh on the company’s financials, going forward. Further, concerns related to Infosys’ financial business in the U.S., which is facing headwinds due to reduced spending levels in the IT industry, loom large. The increasing competition in the IT industry, from both big and small players, is also posing challenges regarding pricing and differentiation for the company.
A deeper insight into Infosys can be obtained from our most recent research report issued on Jan 16, 2015.
Infosys currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the industry include Unisys Corp. (UIS), Apple Inc. (AAPL) and Adobe Systems Inc. (ADBE). All three stocks currently carry a Zacks Rank #2 (Buy).
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