Infosys is witnessing a jump in cloud-based services as it has partnered with large cloud providers such as Google Cloud, Amazon web services and Microsoft Azure to help clients move their applications from traditional IT infrastructure to the cloud.
The Bengaluru-based IT services provider is betting on this growth to drive digital services.
“The expectation from what this unit will do is higher from us than from some of the other service lines and rightfully so,” Narsimha Rao Mannepalli, head of cloud and infrastructure at Infosys, told ET. “This is a space where a lot of IT spend will happen and opportunities will be there.”
Technology researcher Gartner has projected that the market size and growth of the cloud services industry at nearly three time the growth of overall IT services through 2022. In April, it projected the global public cloud service market to grow to $331 billion by 2022 from $182.4 billion in 2018.Infosys has internally set a target to achieve over 50% of its revenues from the digital services, up from 35.7% in the quarter to June, Company CEO Salil Parekh had recently told ET.
Digital services grew at 41.9% in the quarter to June.
“A lot of that (50% target) is only doable if we continue to do well on the cloud side,” Mannepalli said. “It’s very unlikely that we can achieve any of those if we don’t succeed on the cloud side.”
The company looks to further tap into enterprise contracts by offering infrastructure transformations, helping create new business models and digital experiences, and cloud advisory services, he said.
Mannepalli said North America will continue to see highest traction for its services followed by Europe, while aggressive bets in cloud are also being made in the Australia region.
“Infosys already has a thousand odd customers in our client list…so we always begin with that…so the cloud revenues will reflect the larger Infosys revenue,” he said.
Infosys has seen faster growth for its cloud services in the last two years from banking, financial services and insurance clients, Mannepalli said. “But then their technology real estate is so high that their move to cloud will continue to be a big play in the next five years,” he said.