Indian IT major Infosys has set a goalpost of $20 billion in revenue with and operating margin of 30 per cent to be achieved by 2020, said Chairman R. Seshasayee on Saturday.
“Vishal Sikka, our CEO and his management team have articulated a strategy to achieve $20 billion in revenue by year 2020 with a 30 per cent operating margin and $80,000 in revenue per employee,” he said at the 35th annual general meeting.
Terming the four-year targets to be aggressive and ambitious, Seshasayee said Infosys board strongly believes that these are eminently achievable through game changing initiatives, with the course not being easy.
The chairman said that the said goals must also be viewed in the context of significant external and internal challenges.
“Markets are volatile, business models are changing rapidly, new capabilities need to be built and the organisation needs to adapt with great agility,” he said.
According to Seshasayee, digital technology is having a phenomenal impact on businesses around the world and creating exciting and viable new opportunities for Infosys to parent with clients.
“However, capitalising on this opportunity requires a strong focus on innovation and collaboration.
“At the same time, there has never been a greater imperative to embrace technology to counter the downward pressures on pricing, resulting from commoditisation of traditional software services, in order to maximize efficiencies and reconfigure our solutions,” he added.
Infosys is on a journey to transition from the model of services to a model on innovation.
“A simple way to think about this is being more. This is in some sense the essence of the journey that we are,” said Vishal Sikka at the 35th annual general meeting.
Elaborating on the current state of services, Sikka highlighted that the times we are living in are times where everything is becoming a service.
“Products, printers, copiers, airplane engines, airplanes themselves, telecom products are all becoming services.
“In this kind of a time, it is an extremely privileged situation for us as a services company to deliver value. At a time when everything is becoming a services company, the services company has a huge opportunity,” he said.
And to address the impact of digital technology on everything as well as services, Sikka said he has laid out a very straightforward strategy of ‘Renew, New and Culture’.
“Renewal is about renewing our existing businesses which is about seeing all the businesses that we are engaged in becoming improved, becoming better as a result of new technologies and new opportunities that are available to us,” he said.
According to Sikka, several businesses and leaders are concerned about the impact of digital technology on existing businesses and the need to transform existing business to face it.
“So the renew part of our business is all about being better at the things that we already know about,” he said, adding Infosys is renewing its service lines on the basis of automation and innovation and delivering new initiatives.
Under the New strategy, new technology and new initiatives create an opportunity that are completely different.
“And this dual strategy of renewing our existing business as well as doing new things in parallel is always founded on the basis of a common culture.”
Saying culture is an element tying everything together, Sikka said if Renew is about being better and New is about being different then Culture is about being true.