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Infosys Relies on Digital Transformation, Teams Up With SAP

Zacks Equity Research

Infosys INFY unveiled its strategic program Innov8 to boost its digital transformation of enterprises using SAP SE SAP digital solutions.

Reportedly, the company is in talks with SAP to co-develop a go-to-market engagement model between its Innov8 program and SAP's project Embrace that will help providing digital solutions to enterprises.

The alliance is expected to help Infosys develop into one of SAP's first global strategic service partners for project Embrace, which is devised to increase the enterprise customer uptake of cloud and digital technologies from SAP.

Digital Transformation: A Tailwind

Infosys has been attempting to strengthen its digital transformation capacities for expanding and bolstering its position in the highly competitive landscape.

The company is assisting its clients in more than 45 countries to create and execute strategies for their respective digital transformations. CEO Salil Parikh has also been focusing more on investments in digital technologies ever since he assumed office.

We note that Infosys is looking to establish a powerful ecosystem of digital specialists to better serve clients across all verticals in realizing their primary need for digital transformation. Reportedly, Infosys has built solutions, driven by AI and machine learning to target digitizing the data supply chain.

IDC expects spending on technologies and services that enables digital conversion of business practices, products and organizations to reach $1.97 trillion in 2022.

We therefore believe that the company’s initiatives in this regard will favor its top line going forward.

Infosys Limited Revenue (TTM)

Infosys Limited Revenue (TTM)

Infosys Limited revenue-ttm | Infosys Limited Quote

Infosys Gain on Partnership Wins

Infosys has been bracing its core competencies by pursuing strategic collaborations and acquisitions. The company’s alliance strategy aims at teaming up with leading technology providers to capitalize on the emerging technologies in a win-win situation and a cost-competitive manner.

In order to boost digital, cloud, legacy modernization and automation business, Infosys consolidated its strategic tie-ups with Adobe, Microsoft, Amazon Web Services and salesforce.com.

Last year, the company in a bid to target enterprise customers joined forces with Alphabet’s GOOGL Google Cloud to offer cloud transformation and migration services.

We believe, such efforts in digital transformation will leverage the company’s position to contest with its rivals like Accenture ACN and Cognizant.

Infosys currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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