Infosys' large deals to drive future growth
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Country's second largest IT services company Infosys' large deal wins in the last financial year, which was the highest in its history, put the firm in good stead for future growth.
In the 40th annual general meeting (AGM), company's chief executive officer (CEO) Salil Parekh said rising net new deals reflected increasing adoption of its offerings among clients.
"We started the large deal programme in financial year 2018 with a value of $3 billion. And each year, we managed to make much more impact. The reason behind is the capability we are building and the ability to bring these capabilities together for our clients. In financial year 2020-21, 66 per cent of these deals were net new, giving us an incredible foundation of what we can do going ahead," said Parekh addressing shareholders at the AGM that was held virtually on Saturday.
He cited the examples of large outsourcing digital transformation contracts bagged from Vanguard, and Daimleras the signs of increasing traction in the large deal space.
Infosys has seen a steady increase of large outsourcing deals since Parekh took over as CEO in 2018. While the Bengaluru-headquartered firm won $3 billion worth of large deals in FY18, it increased to $6 billion in FY19, and $9 billion in FY20. In the last financial year, Infosys had the highest large deal wins worth around $14 billion out of which 66 per cent came from new clients.
"The company has been relentlessly focused on transforming Infosys into a highly client-relevant, client-focused company. This is evident in the number of large deals we have won over the year – it is the highest in Infosys history," said Infosys' chairman Nandan Nilekani at the AGM.
Apart from large deals, the company has also seen increase in its high value client base in the last three financial years.
While in financial year 2017-18, the IT services firm had 20 clients which were contributing $100 million revenues each annually, this increased to 25 in FY19 and 28 in FY20. In the last financial year, the company had a total of 32 large clients in this category.
