Infy eyeing at least two deals every quarter

Infosys, India’s second-largest information technology services provider, believes winning two to five ‘transformational’ deals in the range of $30-80 million for the company every quarter could become a norm.

For the quarter ended March 31, 2009, Infosys signed four transformational deals, of which two were in the range of $50 million (225 crore). “Our capability to win transformational deals was not high. But, over the past few years, we have been building capabilities in this segment. This includes having presence in various geographies like Latin America and we are seeing good traction in the flow of such deals. Last quarter, we added five; this quarter we have added four,” said Chandrashekar Kakal, Senior Vice President, Enterprise Solutions.

Kakal explains that clients’ overall budget for transformational deals is in the range of $200-300 million, but the work generally gets divided into smaller components. “So, the deals we are focusing on are in the range of $30-80 million (Rs 135-360 crore). For us, transformation deals are not just IT deals; these are deals aligned to the business of the client. Whenever we get into a transformational deal, our endeavour is to have at least 15 per cent of the efforts around consulting,” he added.

Enterprise solutions, which consist of consulting services and packaged implementation, accounted for 26 per cent of the company’s revenue for the quarter ended March 31, 2010. Of this, about 20 per cent came from packaged implementation and five to six per cent from consulting. For the financial year, this services unit was the second highest, with 24.4 per cent. The group has a total headcount of 14,600 employees overall.