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Cover Story
 

“Our Bfsi Clients are now Focussing Less on Costs’’
Kris Gopalakrishnan, CEO & MD, Infosys, talks to Virat Bahri on The Company’s results and The Management Changes
Issue Date - 21/07/2011
 
B&E: What is your outlook for the coming year in terms of topline and customer wins? What are the trends in client spending in the coming quarters?
Kris Gopalakrishnan (KG): We expect the next fiscal to be a normal year for the industry. We have given a guidance of 18-20% growth for the next fiscal. The previous quarter was good for Infosys with respect to large and transformational deals. Infosys closed four transformational deals and six large deals in the previous quarter. After the big recession in the US, clients have started to fine-tune their spending based on what is happening in the macroeconomic environment more quickly than in the past. This is what had impacted Infosys in the last quarter. Today, we have much more clarity on what they are going to spend on but whether they will actually spend that money is a concern. If clients face further challenges in the economic environment, they may fine tune their spending more.

B&E: Infosys, as a company, has been known as a founder-run corporation since inception. How will the entry of K V Kamath as Chairman help the company to achieve its strategic objectives?
KG: The recent developments in management ensure a seamless transition from founders to the next generation of leaders. This will prepare the company for the future as well. K. V. Kamath is experienced and is an expert in corporate governance. His role is to chair the board and oversee governance.

B&E: We have hardly seen a trend of cross-industry CEOs & Chairmans in India so far while there are many global examples like Alan Mulally, Dan Akerson, Jeff Kindler et al. According to you, how does it help to rope in an executive in the top management from a different industry?
KG: Every successful corporation needs to transform itself periodically to remain relevant to its stakeholders. The recent change in Infosys’ leadership team is a planned effort by the Nominations Committee to ensure smooth transitions within the company.

B&E: Infosys already has a strong hold in the BFSI segment? How do you see this segment going forward?
KG: BFSI grew by 8.3% sequentially; and 4.2% in constant currency during Q4 FY11. As far as the growth expected is concerned, it is driven by a combination of both services and the product business with higher contribution from the services business. BFSI clients of Infosys are focusing on operational efficiency and getting more competitive than on cutting costs. This opens up opportunities for us in the areas of front-end consulting business and heavy lifting technology.

 

Virat Bahri           

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