Infosys Technologies and EC Cubed, the leading US provider of business to business e-commerce software and service solutions announced a strategic partnership that will enable large companies to rapidly build and deploy e-commerce solutions.
A world leader in providing IT consulting and software services to Fortune 1000 companies, Infosys offers software services such as application development, re-engineering, software maintenance, Internet consulting and package implementation.
The partnership will allow customers of both the companies to leverage the combined capabilities of EC Cubed's e–commerce suite ecWorks (TM) and Infosys' system integration expertise.
Under the terms of the agreement, the Infosys/E cubed partnership will encompass three primary collaborative areas: product development, quality assurance and maintenance; systems integration and professional services.
E-commerce, Infosys’ new focus area, grew from 6.4% of total revenues in 1QFY2000 to 10.3% of total revenues in 2QFY2000. In absolute terms this almost represents 100% quarter on quarter growth. This tie up further reveals the attention to detail, which the management is known for. While most of the software companies have spoken about the focus on Internet and e-commerce, Infosys has actually put in place a strategy for consistent growth from this business.
Despite the stock trading at a historical peak, given the potential from acquisitions, overseas development, e-commerce thrust, the upside remains. Perhaps the only grey area could be a de-rating of the sector as a whole, which doesn't seem likely at the moment. It is for this reason that the analysts have flagged the stock as a ‘BUY’.
LEGAL DISCLAIMER: Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA or Canada, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.
SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.
Equitymaster Agora Research Private Limited. 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India. Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: firstname.lastname@example.org. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407