• DECEMBER 10, 1999

Infosys: The upside remains

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.

Market View:
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’.

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