The Hindu Business Line : Infosys widens clientele, sees good growth in BPO biz

ROBUST customer interest, increased outsourcing and interest in Infosys' technology and consulting practices have resulted in 51 per cent rise in Infosys' net profits at Rs 497.34 crore.There was sustained demand for offshore outsourcing, according to Mr Basab Pradhan, Head, Worldwide Sales and Senior V-P, who added, ``Clients have responded favourably to the combination of our consulting services and offshore delivery.''

The company has 434 active worldwide clients, one new client in an engagement valued at over $50 million, joining the three the company already had. The number of million dollar clients went up to 156 during the quarter, from 146 in Q2 and there were increase in most of the categories of large clients. The company said there was a lot of opportunity for mining and growing its existing large customers, adding that they had just scratched the surface of the opportunity for BPO engagements.

Infosys Consulting, with 15 clients earned revenues of Rs 7.54 crore but is still in the investment phase, Infosys Managing Director and CEO, Mr Nandan M. Nilekani said, explaining its net loss of Rs 8.38 crore. That business is expected to scale aggressively to have 500 consultants. "We are seeing the greatest traction from the financial service and telecom service providers and expect to do much better in transport and logistics sectors as well," Mr Pradhan said. The company earns two thirds of its revenues from North America, 22 per cent from Europe, 2.1 per cent from India and the balance from the rest of the world.

The Indian business increased its share in revenues from the banking product division mainly, Mr T. V. Mohandas Pai, CFO, said.

Providing information on customer wins during the quarter, Mr Nilekani said Infosys secured an engagement with the Asian and North American divisions of an automotive manufacturer.

During the quarter, Infosys started working with an engineering design house in the US on a design project. Large corporations in the insurance and healthcare industries were interested in Infosys' offerings, Mr Nilekani said, adding that a US-based wellness company and a provider of tools, applications and healthcare content had engaged Infosys to analyse, design and implement new systems that strengthen their internal processes.

A Preferred Provider Organization (PPO) network in the US selected Infosys to rewrite its core system and Infosys was also working on developing an enterprise roadmap for content management for one of the largest insurance companies in the US.

In other major wins, a global leader in product safety and certification testing and a leading global provider of information technology solutions for the air transport industry were added to Infosys' client portfolio.

In China, Infosys started working with a recognised global leader in power and automation technologies to revamp its IT systems. In Europe, an integrated data services and technology provider signed up Infosys for assistance in developing software tools for its clients. In yet another win a UK utilities business engaged Infosys to convert its software platform.

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