Infosys' (INFY) Topaz Accelerates Spotlight's Customer Growth
Infosys Limited INFY recently revealed that Spotlight Retail Group has achieved unprecedented customer growth in the past 12 months through an omnichannel digital fulfillment and advanced analytics platform built on its AI-first offering — Infosys Topaz.
With the help of this platform, the Australian retail giant, Spotlight Retail, has been able to provide a hyper-personalized online shopping experience for its customers. The enhanced customer experience has led to growth of 113% in the retailer’s customer base and 93% in transaction volume in the past 12 months.
Powered by Infosys Topaz, Spotlight Retail’s digital commerce platform is scalable on-demand, which is helping the Australian retailer meet the significant surge in transaction volumes among customers.
Integrated with advanced analytical capabilities powered by Topaz, the platform is also helping Spotlight Retail manage inventories better while reducing the occurrences of order cancellations due to insufficient stock. Additionally, the platform has fastened order fulfillment, thereby significantly improving customer satisfaction levels.
The robust customer and transaction volume growth witnessed by Spotlight Retail ensures that the Infosys Topaz product has significant growth potential. Topaz is an AI-first set of services, solutions and platforms using generative AI technologies. The product suite helps amplify the potential of humans, enterprises and communities to tap into the next generation of opportunities.
Infosys Limited Price and Consensus
Infosys Limited price-consensus-chart | Infosys Limited Quote
Infosys Boosts AI Offering
INFY has been ramping up its AI offerings as the success of OpenAI’s ChatGPT has demonstrated the AI technology’s potential to improve operations in almost every industry. Additionally, the company is strategically leveraging its AI capabilities at a time when cost efficiency and consolidation are the top priorities for its clients. It has already undertaken more than 90 generative AI projects for clients, as reported during the second-quarter fiscal 2024 earnings conference.
Infosys’ AI segment is seeing some potential in Retail, Communication and Original Equipment Manufacturer clients, who are focusing on digital transformation, cost saving, operational optimization and automation.
Considering the huge growth opportunity in the AI space, Infosys is continuously focusing on enhancing its Topaz capabilities through partnerships with the likes of Microsoft Corporation MSFT and Alphabet Inc.’s GOOGL Google.
In September 2023, Infosys and Microsoft collaborated to leverage their AI solutions, such as Infosys Topaz, Azure OpenAI Service and Azure Cognitive Service, to develop industry-scale solutions. This collaboration has enabled customers of both companies to transition from digital to AI-based solutions that will enhance the democratization of data and intelligence, boosting productivity and operational efficiency while decreasing the turn-around time.
Later, in October 2023, Infosys and Alphabet’s Google expanded their strategic partnership to help enterprises build AI-powered solutions. The expanded alliance has brought together Google Cloud's generative AI solutions to Infosys Topaz.
The integration has helped the Bengaluru, India-based IT consulting and outsourcing company create offerings that customers can adopt and easily integrate generative AI into their businesses. Therefore, this collaboration has enabled the customers to transition from digital to AI-based solutions.
Infosys’ AI Offerings Strike Large Deals
In the last few months, Infosys has struck several billion-dollar deals for its AI-based solutions and services. In September 2023, the company secured a $1.5 billion deal with an undisclosed global company for 15 years, according to an exchange filing. Through this agreement, INFY will provide an array of upgraded digital experiences and operational services based on its platforms and AI solutions.
This marked the company’s second AI deal in September, with the first being a strategic and multi-year collaboration with STARK Group to drive its digital transformation based on Infosys' Topaz. In July 2023, INFY signed a $2 billion deal with an existing client, committing to deliver AI and automation services for five years.
Despite these AI achievements, Infosys is facing a mixed bag of challenges. Its business is being affected by near-term uncertainties stemming from inflation and higher interest rates. Slow decision-making processes, along with softness in digital transformation programs and discretionary spending in the current uncertain macroeconomic environment, are hurting INFY’s volumes.
Zacks Rank & a Stock to Consider
Currently, Microsoft and Alphabet each carry a Zacks Rank #3 (Hold), while Infosys has a Zacks Rank #4 (Sell). Palo Alto carries a Zacks Rank #3. Shares of MSFT and GOOGL have rallied 55.4% and 48.5%, respectively, while INFY has fallen 3% year to date (YTD).
A better-ranked stock from the broader technology sector is Intel Corporation INTC, which sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Intel’s fourth-quarter 2023 earnings has moved a penny north to 44 cents per share in the past 30 days. The consensus estimate for 2023 earnings has increased 2 cents to 95 cents in the past 30 days.
Intel's earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once, delivering an average surprise of 136.3%. Shares of INTC have surged 58.5% YTD.
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