Newspaper reports reveal that Infosys has struck a strategic alliance with xIBA Internetworking Business Architects, an Australian company providing web development and eBusiness solutions.
Infosys is India's premier software solutions company. Over the years, it has moved up the value chain from an onsite to offshore developer, then to product development, and finally towards providing complete solutions. In FY99, it became the first Indian company to list its shares on the NASDAQ.
Infosys is gunning for e-commerce in a big way. While e-commerce accounted for 6.4% of total income in the 1QFY2000, 2QFY2000 witnessed 10.3% contribution from e-commerce. It now wants to consolidate on e-commerce, and has targeted tie-ups as a vehicle for growth.
With this objective in mind, it has struck a strategic alliance with xIBA of Australia. The alliance will offer comprehensive end-to-end solutions, with xIBA providing web design and development while Infosys will provide customised design of new applications, system maintenance, software development and integration. The alliance will covers marketing and technology partnership to provide e-commerce solutions for Australia and Asia-Pacific companies.
Meanwhile, the company has set up two offices in Europe (Brussels and Frankfurt) to increase exposure to that region.
Infosys seems to have hit the nail on the head by targeting e-commerce as a potential growth driver. With Internet awareness (and access) on the rise, e-commerce applications will get a huge fillip. The sooner Indian companies build expertise in this area, the better equipped they will be exploit e-commerce opportunities that come their way. E-commerce is high-growth area, and few companies can ignore its potential. Many Indian companies like Satyam, NIIT and Wipro have already hopped onto the e-commerce bandwagon, and others can't wait to join them.
Analysts forecast higher net profit growth for Infosys in the last two quarters of FY2000. The main reason for this is the higher volume of high-value projects that the company will be undertaking in future. Analysts have retained a 'BUY' rating on the company.
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