Infosys CEO for sacrificing margins to be future ready
Salil Parekh says he wants to re-skill employees and focus on developing the firm's agile digital business to capture upcoming opportunities
Infosys chief executive officer Salil Parekh has said the software-services major will have to sacrifice profit margins by investing in advanced technology and skills in order to capture future opportunities.
He said the focus would be on internal talent, re-skilling of employees and localization of the workforce in the US. He said the company would focus on digital services, as he felt there was a huge market there, reports The Times of India. He pointed out that Infosys’ “agile digital” business was currently worth US$2.79 billion, while the potential market is $200 billion.
Parekh said he felt Infosys had a rare combination of skills and experience that will benefit the company in the years ahead. It has been working with customers for decades and can use that understanding to help them navigate shifting technology trends, such as cloud computing and artificial intelligence.
The Infosys CEO is also keen on some big acquisitions and has already met with the M&A team and asked them to draw up a short list of possible targets that could help buttress its digital capabilities, reports Bloomberg.
The IT services giant had earlier forecast that its operating margins would be 22-24% lower than the previous year’s. This has had an adverse effect on its share price for the past few days.