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Summary
Omdia attended the Infosys US Analyst Day in March 2024 and had the opportunity to interact with Infosys’ clients and executive leadership. The Analyst Day provided comprehensive insights into the company’s strategic initiatives, market approaches, and efforts toward driving digital transformation and growth in North America.
Infosys showcases commitment to its ambitions in North America
Infosys continues to make robust investments in upping its presence in North America, which underscores the company’s commitment to scaling digital capabilities, automation / artificial intelligence (AI), reskilling, and localization. Infosys has set up six hubs (its original target was four) and now employs around 27,500 people in North America, nearly 3× as many as it originally committed to hiring in the region. The focus on talent diversification continues through partnerships with local universities, a well-received apprenticeship program, and the inclusion of non-STEM disciplines to support the creative, design, and innovation side of its business. This is a commendable strategy that not only addresses the talent gap but also promotes a diverse and innovative workforce. The representation of women in the company’s North American workforce has also increased from 28% in 2018 to 32% in 2024, a positive step toward a more inclusive workplace.
Several of Infosys’ hubs host Living Labs, a sandbox environment for rapid innovation, offering customers the tools and talent to test vertical-specific emerging technology solutions, and Wingspan, a learning management system, offers the ability to upskill talent on these technologies. Infosys also uses an internal version of Wingspan, which emphasizes digital and audiovisual learning resources, highlighting the vendor’s dedication to fostering an innovative and learning-oriented environment that not only benefits its employees but also offers value to clients through enhanced productivity and efficiency. Furthermore, the collaboration with the Infosys Foundation to promote tech education and careers in local communities through hackathons and training initiatives exemplifies a commitment to societal impact and talent development.
The hub approach demonstrates a successful model for growth in a near/onshore model
Infosys’ strategic initiatives, including the establishment of innovation centers and hubs in proximity to clients and industry clusters, demonstrate a successful model for helping clients speed innovation and accelerate digital transformation programs. These hubs, by fostering a sense of community and cocreation, have positioned Infosys beyond the perception of it as a low-cost outsourcer, enhancing its standing as a strategic partner for US clients. These investments have paid off: Infosys’ North American revenue has increased from around $6.6bn in FY2018 to $11bn in FY2023.
The launch of Topaz (a data/analytics and AI-driven offering to accelerate growth for clients, scale efficiencies, and build connected ecosystems) in May 2023 and the increasing focus on integrating generative AI into solutions highlight Infosys’ ambition to lead in AI-driven transformation and innovation. However, Infosys must resist the temptation to label intelligent automation as AI. The company’s approach to nurturing partnerships with cloud and AI technology providers, and its emphasis on responsible AI and data readiness, position Infosys as a forward-thinking player in leveraging AI for business outcomes. Infosys’ initiatives around AI, cloud, and security are strategically aligned with market demands and indicate a keen understanding of customer needs. Further differentiation is being built through integration of Cobalt and Topaz to deliver innovation at scale and by deepening industry-specific solutions and playbooks to showcase not just technological prowess but also sectoral expertise that can address nuanced industry challenges. These, combined with a sharp focus on delivering business outcomes, significantly enhance Infosys’ ability to offer more tailored and impactful solutions to clients.
With a strong emphasis on accelerating growth and enhancing client transformation capabilities, and a forward-looking stance on the future of work, workforce, and workplace, Infosys demonstrates a robust framework aimed at fostering innovation, inclusivity, and sustainability. Infosys’ strategic initiatives and market approaches also reflect a comprehensive effort toward driving growth, innovation, and transformation, both for customers and within its own business, in the Americas. Infosys is replicating the North American model across Mexico and Europe to help customers in the region accelerate transformation and adoption of emerging technologies. By capitalizing on its strengths and addressing areas for improvement, Infosys is positioning itself well to navigate the challenges and opportunities of these markets.
There is still work to be done around brand visibility
Though Infosys has made commendable strides in various areas, there are opportunities for refinement and further growth. The expansion into hubs and talent diversification initiatives are noteworthy, but Infosys could benefit from a more aggressive branding and marketing strategy in the US to enhance its visibility and brand recognition. A more pronounced narrative that articulates Infosys’ unique value proposition and success stories will help to amplify its market presence.
The emphasis on data readiness and ethical AI is crucial, and Infosys could lead more robustly in the discourse on AI ethics, privacy, and bias. By pioneering standards and practices in responsible AI, Infosys can set new industry benchmarks, thereby elevating its leadership status in the digital transformation arena.
Appendix
Author
Hansa Iyengar, Senior Principal Analyst, Enterprise IT