Infosys today said that it is confident of beating Nasscom’s 2016 financial year guidance, a first since 2012, as it continues to see significant momentum in outsourcing orders going forward.

Addressing analysts at the Bank of America Merrill Lynch Global Tech Conference in San Francisco, CEO Vishal Sikka said that it will beat Nasscom's guidance of 12-13 per cent for the 2016 financial year, on the back of deals won in the last three months.

‘Renew and New’ strategy “Our ‘Renew and New’ strategy is paying off and we have won six deals of over $50 million each in the last 10-12 weeks,” he said. Reacting to this, the stock closed at ₹2,023, up 0.71 per cent.

Analysts seem to have reacted positively. Sarabjit Kour Nangra, Vice-President Research - IT, Angel Broking, said the measures seem to be paying off and has upgraded the stock with a target price of ₹2,630. “However, we still conservatively estimate that this financial year, revenue growth will be 10.7 per cent,” she added. Sikka’s confidence comes at a time when Infosys said it will grow in the range of 10-12 per cent in constant currency terms, at the end of the 2015 financial year. This did not enthuse the markets as this outlook pointed out yet another year of below par growth guidance. However, Sikka is in the process of overhauling the culture within the company and is trying to rejuvenate its workforce as the traditional IT services is undergoing dramatic shifts with clients asking IT companies to go beyond staffing. In line with this, he has chalked out a ‘Renew and New’ strategy, which emphasises on unlocking value for its clients instead of plain vanilla outsourcing orders.

Another effort is around ‘Design Thinking’ that focuses on identifying clients' pain points and using technology to solve it instead of merely reducing costs.

“These differentiated service offerings will bring growth back and put us ahead of competition,” said Sikka.

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