Cloud services is contributing a large part of Infosys’s digital revenues as digital transformation is becoming synonymous with cloud adoption, said Narsimha Rao Mannepalli, Executive Vice-President, Head - Cloud Infrastructure and Security Solutions, Infosys.
Infosys’s digital revenues in Q2 FY23 comprised 61.8 percent of the total revenues (₹36,538 crore) and rose 31.2 per cent year-on-year in constant currency. Specifically, cloud revenues for the quarter was mentioned for the first time to be over $1 billion.
Mannepalli told businessline that early investments in building cloud capabilities, creating an integrated cloud offering, Cobalt, and acceleration in digital transformation bought on by the pandemic, have aided the growth.
“Infosys has been investing in the cloud as an infrastructure play and was one of the big bets we called out. Over the last three to four years, particularly after we launched the new Infosys focus on digital transformation, we see that slowly the market is moving to a situation where almost transformation and cloud transformation are becoming synonymous,” he said.
With the acceleration in technology adoption over the years, Mannepalli says the cloud has become increasingly pervasive. Infosys is seeing that moving to the cloud is not just about increasing efficiency and cost optimization anymore, but also to launch new business models, shore up revenues, serve customers better and bring the organization together.
The Infosys Cobalt offering that was launched two years ago has also been serving well, Mannepalli mentioned. “Our investment in Cobalt will focus on integrating the service offerings offering end-to-end value to customers, building a partner ecosystem, and bringing in the startup and innovation ecosystem globally into the mix, and capability building,” he said.
The acquisitions made to add capabilities in terms of service offerings and specific geographies have also been contributors to the growth, Mannepalli said. “Infosys has been working with various SaaS players, which has been working out well for us. Going forward, there’s always a lookout to see how to add more capabilities and bring in more players,” he said.
Speaking about the future growth outlook, Mannepalli said that Infosys has a lot more runway ahead around the cloud transformation and will continue to grow aggressively despite impending macroeconomic headwinds. “We believe that by next year only 50 per cent of organisations would have leveraged cloud for 50 per cent of their needs. Hence, there is still 75 per cent of work with potential equipment down the line,” he added.