Infosys Extends Cloud Transition Services, Partners Google

Infosys INFY in its attempt to target enterprise customers joined forces with Alphabet’s GOOGL Google Cloud to offer cloud transformation and migration services.

The company, through Google Cloud Platform (GCP), will offer solutions and services to large-scale customers for easier transition and adoption of cloud-first strategy.

Reportedly, Infosys has built solutions driven by Artificial Intelligence (AI) and machine learning to focus on digitizing the data supply chain.

The solutions include Analytics Workbench for augmenting data platforms to deliver end-to-end self-service capabilities and Information Grid to provide a data pipeline for data movement to GCP.

A holistic offering called Customer Genome to help enterprises build a self-service driven and entity-centric foundation for explorative, predictive and prescriptive analytics was also rolled out.

Further, the company’s recently launched Data Native Intelligent Enterprise solution will help organizations react to external signals in real time and thereby provide intelligent and engaging experiences to customers.

Digital Transformation — A Key Driver

Infosys has been attempting to strengthen its digital transformation capabilities to expand and strengthen its position in the highly competitive environment.

We note that Infosys is looking to build a strong team of digital specialists in order to cater to clients across all verticals whose key theme remains digital transformation. The company is witnessing an upward momentum in digital deal sizes.

Notably, the company generated 28% of revenues from its digital business in fiscal 2018, which was 26.9% higher year over year.

IDC estimates that 40% of technology spending will be allotted to digital transformations, with enterprises spending more than $2 trillion by 2019. We believe Infosys is well positioned to take advantage of the projected growth and a move like this will positively impact its top line.

Infosys Limited Revenue (TTM)

Infosys Limited Revenue (TTM) | Infosys Limited Quote

Infosys Banks on Partnerships

Infosys has also been strengthening its core competencies by pursuing strategic collaborations and acquisitions. The company’s alliance strategy is targeted at collaborating with leading technology providers, which allows it to take advantage of emerging technologies in a mutually beneficial and cost-competitive manner.

Per Infosys president and deputy chief operating officer, Ravi Kumar, “We see Google Cloud as a key partner in the cloud-first landscape, putting our partnership in a great position to provide exceptional value to our global customer base."

Over the past few quarters, Infosys has collaborated with many bigwigs to fortify its portfolio and market share. To boost digital, cloud, legacy modernization and automation business, Infosys has strengthened strategic partnerships with Adobe ADBE, Microsoft MSFT, Amazon Web Services and Salesforce.com.

With these partnerships and the subsequent expansion in product offerings, the company will be able to attract new customers and keep the existing ones hooked on to its services, in our view.

Infosys currently carries a Zacks Rank#3 (Hold). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.

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