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Infosys: New alliance to add value?

Sep 15, 2000

Microsoft Corporation and Infosys Technologies has announced a strategic global alliance to develop e-business solutions built around the Internet. The two companies will develop solutions in areas such as customer relationship management, e-commerce, financial services as well as insurance and retail. The alliance of Infosys with Microsoft centres around .NET Enterprise platforms and in the area of e-commerce. Infosys is expected to benefit significantly from this tie up, as Microsoft’s .NET enterprise servers are the fastest way to integrate, manage and web enable the enterprise. The servers are built from the ground up for inter-operability using open web standards such as XML. The software is accessible by any device, any time, at any place and is fully programmable and customisable. Infosys could be helping Microsoft design software for any of the areas which Microsoft plans to offer like SQL Server 2000, Mobile Information 2001 and Internet security and acceleration server 2000. The fact that Infosys has already built up a good expertise in e-commerce in the last two years will help the company to get good business.

The relationship combines Infosys' proven expertise in software solutions with the scalability and reliability of Microsoft's platform to enable the delivery of robust, cost-effective e-business solutions to customers. The two companies will also undertake joint marketing initiatives and account planning. Infosys will re-deploy 1,200 out of its 7,500 workforce in the first year of the initiative. Infosys thus will effectively leverage on the very latest Microsoft technologies. This strategic alliance would also help the companies to gain new customers and a greater market share. However the companies have not yet announced any specific numbers either on the investment front or on the revenues accruing from this tie up.

The alliance will certainly add to the bottomline of Infosys. But what is not clear in this alliance is that whether Infosys would part with its expertise on the Internet and e-commerce for an exclusive application for Microsoft.

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