IT major, Infosys is enhancing its presence in Europe with the objective of maximising revenues from that region.
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.
After having achieved a fair degree of recognition in the US markets, Infosys has shifted focus on Europe. With this aim in mind, the company has set up two offices in a Scandinavian country, as well as Belgium. Earlier, the company had opened offices in Frankfurt and Brussels. Infosys is also augmenting its manpower strength in Europe.
As reported by a leading business daily, Infosys has already made its presence felt in Europe by bagging a US$ 20-25 m order from an insurance company. Infosys is currently targeting companies in Europe in areas of financial services and distribution and logistics management. The company has three major clients - Sainsbury, the retail chain, Reebok, leading sportswear company and Nestle SA, food major.
After the US, Europe is definitely the most lucrative market for software. Europe has its share of conglomerates, and a sizeable number of Fortune 500 companies are based there. Demand from these companies for software solutions and products, e-commerce related solutions, ERP is very high. Indian companies with an edge in manpower capabilities and lower costs have an important role to play in this region.
While most Indian software companies have been enamoured by the US and have targeted mergers and acquisitions in that region, Europe has had to play second fiddle. To that extent, Infosys has identified correctly the potential in this region.
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.
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: email@example.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407