Software exporter Infosys for the first time admitted that the timing of their Infosys 3.0 strategy could be wrong.
Speaking at the Wells Fargo Investor Conference in New York, Rajiv Bansal, Chief Financial Officer of the company reportedly said that it was the right strategy in the medium to long term, adding Infosys 3.0 timing was off and at the same time discretionary spend disappeared.
Infosys has been struggling to post favourable numbers when compared to its peers in India. However, Bansal said that the demand was much better than what was seen 4-6 quarters ago and is optimistic about the demand environment. “The demand environment has certainly improved, the US is looking much better than Europe right now. Financial services deals are very price-competitive. We are looking at acquisitions to increase our presence in healthcare.”
He also cautioned that with pricing pressure, the company may be forced to look at more ways to reduce costs and boost margins.
The company has often been criticised for its high and superior margin strategy. Murthy had, after his return as executive chairman, put focus back on growth. Bansal is reported to have stated that they will keep their margins narrow to focus on growth. “We will take tough decisions; invest more, even if it impacts margins. We want to get back to industry-leading growth,” media reports quoted him as saying.