NEW DELHI: Infosys Ceo Vishal Sikka chalked out the way that the Indian IT industry will take in the future, stressing the importance of automation and its effect on how IT firms do business. According to Sikka and Infosys, automation is already resulting in hundreds of manhours saved and effort gained.
For instance, according to Sikka, operating margins have remained stable despite pricing headwinds and employee wage increase.
“Revenue per Full-Time Employee (FTE) increased by 1.2 per cent as a result of automation, utilisation and productivity improvements. Automation itself released about 11,000 FTE worth of effort through the year, a clear demonstration of how software is going to play a role in our business model,” he pointed out.
The company’s emphasis on automation and new technology is not new, and is a strategy Sikka has repeatedly mapped out -- Automation combined with increasing employee productivity and utlilisation.
“At the same time we relentlessly focused on optimising traditional operating levers and costs. Employee utilisation excluding trainees reached high levels of 81.7 per cent,”
Sikka pointed out, adding that the firm saw its highest levels of net operating cash flow of $2.1 billion for the year.
Sikka also spoke about another major project, the shift into new services in new technologies. “We grew multiple new services... these represent a rapidly growing portion of our incremental revenue each year…,” he said.