Infosys executive chairman N R Narayana Murthy has said that, to increase sales effectiveness and deal wins Infosys
gear up its sales team.
Last week at an investor meet he said, “We are in the process of hiring anywhere between 250-350 graduates from B-schools as well as undergraduate schools in the US, Europe, Australia and from some business schools in India. 18 people have accepted from business schools in India.”
On Thursday, Infosys management said the company is likely to meet the lower end of its sales outlook for 2013-14 disappointing investors. Infosys shares fell most in over 11 months that day. However the company is trying to push growth after lagging its peers for the last three years.
Infosys, to focus on growth, has created several new small units that can bring better growth in areas where there is headroom for growth. The company has also hired a well-known group to evaluate its proposal quality and also revamped its key performance indicators so that high performers get better and better rewards and slow performers can get better attention from their seniors, added Mr Murthy.
He said “There are several initiatives we have taken up but most of these are work in progress. They will start yielding results sometime in q1 or q2 of 2015-16.”
He also outlined the company’s strategy to tackle the pressure on margins, which has accompanied the slowdown in growth and made matters worse for Infosys.
India’s IT industry is witnessing higher and higher salaries at each level leading to erosion of margins. Infosys is planning to hire more people at the bottom (entry level) of the pyramid, train them and bring automation and for every consultant, you need to leverage 5-10 software engineers, Mr Murthy added.
Mr Murthy said that the company is also keen to increase the share of its products, platforms and solutions (PPS) business, a non-linear model still in infancy. PPS is based on outcomes or results instead of time-and-material billing model. IT companies in India derive 60-65 per cent of revenues on time-and-material basis.
“When you operate on time-and-material basis, you have to be fair and honest with your customers. So, even if you improve productivity and bring automation, unless you are able to bid on fixed prices projects, the benefit of all the smartness will have to accrue to customers.” Mr Murthy said.
Thirdly, Infosys will continue to provide differential business value proposition vis-a-v