Company focusing on big acquisitions for growth: Infosys

Despite two consecutive quarters of revenue decline, Infosys says that it is not worried with Cognizant taking over in quarterly revenues. Rather, the company is focused on its growth trajectory and expects to see a recovery in the medium to long term.
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Aug 31, 2012, 11.35 AM | Source: CNBC-TV18

Company focusing on big acquisitions for growth: Infosys

Despite two consecutive quarters of revenue decline, Infosys says that it is not worried with Cognizant taking over in quarterly revenues. Rather, the company is focused on its growth trajectory and expects to see a recovery in the medium to long term.

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Company focusing on big acquisitions for growth: Infosys

Despite two consecutive quarters of revenue decline, Infosys says that it is not worried with Cognizant taking over in quarterly revenues. Rather, the company is focused on its growth trajectory and expects to see a recovery in the medium to long term.

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SD Shibulal (more)

MD & CEO, Infosys |

Despite two consecutive quarters of revenue decline, Infosys says that it is not worried with Cognizant taking over in quarterly revenues. Rather, the company is focused on its growth trajectory and expects to see a recovery in the medium to long term.

Speaking to CNBC-TV18's Kritika Saxena, SD Shibulal, MD & CEO of Infosys said that the once conservative Infy was now aggressively looking at big acquisitions. Moreover, he clarified that there were 3 capable people in the top management to take over from him in 2015.

Here is the edited transcript of the interview on CNBC-TV18.

Q: What are your acquisition plans?

A: If you are focusing on continental Europe, an acquisition in continental Europe will make sense. There are areas which are very relevant for acquisition and consulting, probably in continental Europe or in overall Europe. We are taking 6.5% of revenue from products and platforms today to a much larger base. So, acquisitions make perfect sense. That is a completely new area we have opened up to.

Our addressable space for acquisition has enlarged considerably when we launched these new strategic directions. We are looking for acquisition in public service, another new area we have opened up. We have set up a subsidiary in US called Infosys Public Service. Hence, it makes sense to acquire something there. There are various areas, which we have identified and we are very focused on looking at acquisitions.

Q: How much would you spend?

A: Since we are a USD 7 billion corporation, I would say we are comfortable acquiring up to 10% of our revenue.

Q: In 2014 of course there is going to be another change at the helm. There has been a buzz that the next and the most obvious candidate is V Balakrishnan. I want a clarification on that.

A: I think number one, this is a nomination committee decision. It's a very important decision. It is decided by the committee which is a full external board. Number two, we have three people who have joined the board that is Bala, BG and Ashok. We have 40 plus tier-1 leaders and about 150 tier-2 leaders.

The whole idea behind leadership development is to actually prepare them for higher responsibilities. You have the tier-2 leaders who are actually being prepared for tier-1 and tier-1 is being prepared for higher responsibilities and of course the board members are prepared for higher responsibilities. It is a strategic choice which the nomination committee has to make.

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Company focusing on big acquisitions for growth: Infosys

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