Infosys to turn its focus towards corporations

Infosys to turn its focus towards corporationsIndian IT solutions provider Infosys will now focus more on deals from corporations rather than government, which currently contributes around 90 per cent to the company's revenue in its home market.

Experts say that the struggling IT firm is turning its focus towards corporations because the government consumes a long time in finalizing contracts and implementing projects. In September 2012, a daily reported that that government IT projects worth thousands crore of rupees had stalled because bureaucrats postponed signing off on spending decisions as they feared scrutiny after national auditor CAG revealed numerous corruption scandals.

But, the company claims that it has sufficient government business in its India order book and therefore aims for greater share of private sector work.

Speaking on the topic, Infosys Director V Balakrishnan said, "We have sufficient government business in our India order book. So, we believe this is a good time to reorient ourselves and aim for greater share of private sector work."

The company's major overseas operations are also in trouble as poor economic condition forced its European customers to cut back on IT spending. The U. S. and Europe are two of the company's most important markets, with the two collectively accounting for around 85 per cent of the company's profits.

Infosys is a late entrant to India's non-governmental IT services market, which worth an estimated of around $10-billion. Rivals like IBM, Tata Consultancy Services (TCS) and Wipro are far ahead of Infosys. Infosys generate 1.9 per cent of its $7 billion sales from India's non-governmental IT services, while TCS pockets 7.5 per cent of its $10.8 billion revenue.