Analysts See Infosys’ Digital Deals Hovering around $35 Million | In the News
Infosys’ digital deals remain small at $20-35 million as large contracts such as those won by Tata Consultancy Services and Wipro remain elusive, say analysts, attributing this primarily to smaller gains from its new technology platforms.
The company won $1.1 billion worth of deals in the fiscal first quarter ended June, but a majority of these were to build and maintain applications for clients, an area in which Infosys has built expertise over three decades. Infosys has not disclosed the sizes of its digital deals. TCS won its first $50 millionplus digital deal in the October-December quarter. Overall, the company secured five long-term deals worth more than $5.5 billion early this year, with nearly half of the work involving digital-technology based services.
“What we are seeing, to a large extent, is that Infosys is focusing on digital implementation deals that tend to be in the $25-40 million range,” said Peter Bendor-Samuel, chief executive of Everest Group, a global IT research firm and advisory. “They do not seem to be landing the mega deals… they don’t have the (intellectual property) platforms that TCS has and they are not leveraging their balance sheets as HCL (Technologies) and Wipro do.”