EXCLUSIVE: Expect growth momentum to continue in near term, says Infosys CEO Salil Parekh

Infosys may grow its revenues in double-digits beyond the next fiscal, on the back of robust demand for digital and cloud capabilities, CEO & MD Salil Parekh told Moneycontrol in an exclusive interview, as customers turn to technology to drive business and growth.

Parekh said, "Today, there's a tremendous amount of demand for those digital and cloud capabilities. And as you saw in the last quarter, that's now more than half of our business and growing at about 30 percent. Given that sort of attraction, it will have good continuing momentum for some time."

Infosys, which has been growing at a faster clip compared to rivals such as TCS and Wipro in the last few quarters, is confident about growing revenues in double-digits.

He added, "Our view is, many large enterprises are now looking at it not just to improve various components of their performance, but also to look for growth from their own customers, increase the efficiency of their supply chain, make sure that their connection with their people is much more agile, stronger."

When asked if this will be a multi-year cycle of double digit growth that could continue beyond 2022, Parekh said, "We think that sort of a trend will continue for some time." Of course, we've not spoken about anything becoming multi-year in terms of our own growth, it is very clear to say that next year, we will see double digit growth for Infosys," he said.

The IT industry is the largest private sector employer, having created over 4.5 million jobs, according to industry data. It also has a huge multiplier effect on indirect jobs, savings, investment and consumption. IT companies have posted strong results in recent quarters and have outlined plans to hire aggressively this year.

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"I think, to the proportion that the IT industry is contributing to the economy, given that there's good growth across the industry, that will continue because there's additional benefit beyond the IT industry and job creation. And that will continue into the economy as this happens over the next financial year," Parekh said.

Salil Parekh, who took charge as Infosys CEO on January 2, 2018, had outlined stability, stepping up investments and acceleration as pillars of his vision to transform Infosys.

There's a tremendous amount of demand for digital and cloud capabilities

- Salil Parekh

The Covid-19 crisis, in fact, helped the company as it pivoted to a delivery model where 98 percent of its employees continue to work from home, clients are increasingly adopting cloud and digital spend is only likely to go up. It recently won its largest ever deal in history from Daimler under Parekh's leadership.

Infosys co-founder and chairman Nandan Nilekani recently said Infosys has done a terrific job of completely reinventing itself under Salil Parekh's leadership, stating that the company will continue to prosper and thrive under him.

Read the full interview here.