Sanjay Pandey – Sense-X Columnist and Editor – Infosys Product Launch Coverage
Electronic City, Bangalore, Dec. 9, 2013: Tech services giant Infosys Ltd. (NSE:INFY) formally launched its third platform TradeEdge to increase revenue from its flagging products, platforms and solutions (PPS) division. An insight-driven sales platform, TradeEdge provides visibility to global brands across the demand chain; from distributors to consumers.
The launch of the cloud-based product could help Infosys realize its goal of growing revenues from the PPS business. As part of its 3.0 strategy, India’s second largest tech firm aims to raise the revenue from PPS business and earn 1/3 of its overall revenue from PPS. Nonetheless, for the past three years, the division has been able to fetch a paltry 5.5% of the company’s overall revenue.
“In the products platform and solutions space there is a possibility for Infosys to derive much higher margin and going for larger outsourcing projects. These new launches would help us as we move forward to enhance the per capita productivity,” said Infosys executive chairman N. R. Narayana Murthy.
“We are on our path and slowly moving to that direction of PPS contributing 33% to revenue. TradeEdge launch is instrumental in reaching such initiatives. But it is difficult to give a definitive time by when we will reach the 1/3 target,” Mr. Murthy continued on to say.
TradeEdge would provide brands with one of the most affordable means to expand their reach in the emerging markets, the charismatic CEO added.
The company had introduced TradeEdge to the market around three years ago. The cloud-based platform is now being used by 10 global brands across more than 70 countries. Consumer goods major Procter &Gamble is the singular confirmed TradeEdge platform user so far. Infosys declined to reveal the names of the rest of the clients as they did n0t have the permission to do so from the companies.
“The new platform delivers insights that help brands accurately sense and fulfill consumer demand while significantly improving sales and operational performance,” Girish A. Ramachandra, vice president PPS, said.
Infosys’ banking product, Finacle, which has been a great success since its launch in 2000, contributes to over 4% of firm’s overall revenues. Ironically, the rest of the PPS business has been lackluster, contributing a meager 1.5% of the revenue.
Notorious for being a firm believer in ‘organic growth’ philosophy, the company’s leadership now seems ready to tread the uncharted path of inorganic growth. “Infosys may look at inorganic route to expand its product and platform portfolio. We are not averse to acquisitions. If the right opportunity comes, we are open to it,” said Ramachandra, underlining there was nothing concrete on that front as yet.