Infosys to spread wings in China, Japan IT services markets

In a move to narrow the revenue gap with market leader Tata Consultancy Services, IT bellwether Infosys has planned to revamp its efforts in emerging markets — a region where company has not focused much over the years.

Speaking about the company's strategy, Infosys' executive co-chairman Kris Gopalakrishnan said, "The initiative will be lead by V Balakrishnan, the outgoing CFO, will be crucial to the company's fortunes in this space. Bala is the right person for this role."

"Emerging economies around the world have been growing 6-8-10%. We have not been able to take advantage of it. There are many short-term opportunities to leverage in these parts," he added.

In a recent analysis over the company's geographic revenue spread, it was found that the 'rest of the world' territory, minus the key markets of the US and Europe, has been stagnant for a long time. The fund inflow from the territory was flat around 12 per cent in the last three quarters. The scenario remained the same in the domestic market where total revenues has fallen to 1.6 per cent from 2.2 per cent during the corresponding period last fiscal.

The slow growth in this region has been a worry for Infosys as its rival led by TCS is capturing most of the geographical territory. North America and Europe are the key markets, where company generate most of its revenue, around 80 percent of its total revenue.

Country's second largest software exporter will now exploit Chinese and Japanese IT services markets in a bid to expand its market share. These markets will be challenging for Infosys as it need to spend a lot of time trying to devise ways to win over these geographies and if it succeeds in doing so, that will result in a big boost to the company's sagging fortunes.

Read more about: infosys
Story first published: Monday, October 29, 2012, 9:31 [IST]
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