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A top Infosys executive has said that most of the issues involved in managing the backend of GST Network (GSTN), for which the company won a five-year contract in 2015, have been resolved.
“In the recent past, we have not seen any major issues around the stability of the system and we work very closely with GSTN on this one. We believe that things are going well,” Infosys COO UB Pravin Rao told BusinessLine .
The Finance Ministry had flagged a few issues with Infosys over certain tech glitches. According to reports, Infosys was awarded a contract worth ₹1,320 crore to build and maintain the technology network for implementing the Goods and Services Tax (GST) system across the country for five years.
“From a process perspective, there is a lot of effort to simplify the process. As a system integrator, we are trying to implement it. Our effort is to make sure that we do it well and with minimal impact to the stakeholders,” he said.
The Infosys COO said the company was extremely selective in working on India projects and particularly on government contracts and it tries to restrict itself with Central government projects. “Those involved in the project are aware of the time it takes to implement. So, changes are made in a phased manner, recognising the realities, but sometimes it can turn out to be challenging given the nature of services the government is delivering to its citizens,” he said.
Learning opportunity
This results in a huge learning opportunity for the team working on the project. It was important to react immediately to address any issues that can come up during the course of the implementation of the project. “It is tough but at the same time very beneficial for us and gives us great satisfaction as the kind of impact we make is huge. We make sure that whichever project we take up, we deliver it to the best of our ability and everyone’s satisfaction.”
Tech spend to go up
Pravin Rao also said that in the medium to long term, Infosys expects demand to come back stronger with tech spend expected to accelerate while the company will start building resilience in its operations and in the supply chain as well. “I think in the medium to long term there will be more tech spend and we will probably see an unprecedented embrace of digital which will be across industries and geographies,” the Infosys executive said.
Financial performance
Listing out some of the highlights of the latest quarter results (Q1), Pravin Rao said digital revenues of the company grew at 25.5 per cent year on year in constant currency and comprises 44.5 per cent of its revenues while the operating margins were at 22.7 per cent.
“The strategic choices that we made in the past couple of years, excellence in execution, and the speed and agility with which we are able to enable WFH were some of the reasons for the robust performance for the quarter,” Pravin Rao said.
Infosys stocks were up 1.33 per cent at ₹950.80 at close on the BSE on Wednesday.
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