Prabhudas Lilladher's report on Infosys
Infosys’ CEO Dr. Vishal Sikka provided updates on business, strategy, and restructuring in the webcast posted on the website. Dr. Sikka has set the priority for Renew over New, and also putting efforts to resolve some of the structural issues in the company. Management is confident of achieving FY16 guidance and see healthy growth opportunity for the industry.
Infosys management has undertaken various initiatives to strengthen business from Renew side – 1) Initiatives to improve win-ability in renew by improving productivity. 2) CEO office has undertaken ~8 projects in Renew-side and introduced template for bringing innovation in those projects and extended it to ~60% of delivery organization. 3) Design thinking training program has been conducted for ~70% of 18k project managers, who manage ~35k projects (~8.5k master projects) 4) Broken siloed Management Consulting Team and have taken 100 partners and assigned Top 200 accounts (one each from Top 1-100 and another from Top 100-200) to have strategic engagement with clients 5) Office of CEO is managing Top 15 accounts (Topmost 3 accounts in each 5 verticals) with review for 3 out of 15 every week 6) Dr. Sikka devotes 99% of his time for existing business and improving performance 7) Blurring renew-new divide for everyone.
"Infosys’ endeavour to position itself as differentiated service provider, with industry leading growth and margin, have some challenges. But, we see strategic initiatives to weed out challenges are steps in the right direction. Retain buy with a target price of Rs 2,530", says Prabhudas Lilladher research report.
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