Infosys to focus on end-to-end solutions

Paying more attention to offering clients end-to-end solutions even as the firm grew new lines of business will be the way forward at Infosys Technologies.

Senior executives of the IT services firm said this here on Thursday, after the company announced its financial results for the last fiscal.

Nandan M Nilekani, Infosys' president, chief executive officer and managing director said, sectors such as communications, using voice over Internet, auto and aerospace will see strong business growth.

Resources and energy management and logistics too are set to see a strong business growth for Infosys this year.

Traditionally, strong sectors like banking and financial services will also grow, he said. In China Infosys will boost staff at its wholly-owned subsidiary from 132 to 1,000 this year.

James Lin, chief executive officer of the subsidiary, Infosys Technologies Shanghai Company Limited said, work will involve serving Infosys' multinational clients from and in China as well as going after domestic business.

The move towards end-to-end work reflected clients' perception of Infosys "increasingly as a strategic long-term partner," Nilekani said.

"We have added a record number of employees during the year and our variable compensation plan helped align our employee costs to the growth in business," S Gopalakrishnan, chief operating officer said.

Infosys, Gopalakrishnan said, spends between six per cent and eight per cent of its revenues on training and on research and development.

Staff utilisation, however, has come down in the quarter to March, excluding training, from 79.3 per cent for the previous quarter to 76.6 per cent. Including training, it has gone up from 71.4 per cent to 73.2 per cent.

During the year to March, Infosys added 11,116 recruits, taking the staff strength to 36,750. In 2006, Infosys plans to add 12,600 and has sent out 6,000 offers so far, he said.

On new businesses, Infosys was developing solutions around radio frequency indentification technology, Gopalakrishnan, who also heads research and development, he said.

A global advanced electronics and high technology company was using Infosys' expertise in the area.

A second multinational software firm was having Infosys develop industry-based RFID scenarios and templates.

Other engagements include one with a global leader in enterprise mobility computing for product engineering and development.

Also in is a large independent distributor of office equipment and document management services using Infosys' business intelligence solution for Sarbanes-Oxley compliance.

In addition to these Infosys is involved in building a voice over Internet application on the network of a US-based cable multi-service operator and developing a web-based risk management programme for a prominent integrated telecommunications services provider in the United States.

Basab Pradhan, head of worldwide sales, said the company was transforming the way it managed large accounts to provide integrated solutions.

The firm's top 10 clients accounted for nearly 34 per cent of its business. During last fiscal Infosys added 37 new clients taking the number of clients to 438.