Challenges offer Infosys a chance to expand its market share: Nandan Nilekani

The company’s chairman said Infosys has been identified as the fastest-growing IT services brand and that digital acceleration is creating new opportunities for it when speaking to shareholders at the company’s 41st Annual General Meeting.

According to Infosys Chairman Nandan Nilekani, June 25 challenges like slowed growth, supply chain disruptions, skyrocketing prices, sharply rising interest rates, and concerns about a recession give an opportunity to shift to new approaches to acquire market share.

Nilekani remarked in his address to shareholders at the company’s 41st Annual General Meeting that business leaders are facing difficulties in the post-pandemic world, but there is also opportunity to support them.

The reappointment of CEO Salil Parekh and the approval of his increased salary were on the agenda for the AGM in addition to the approval of financial accounts. Salil Parekh’s planned salary is Rs 79.75 crore per year, an increase of 88 percent from FY22, during his second term, which runs through March 2027. He became one of the highest-paid CEOs in the sector when shareholders approved a pay increase for him.

In his chairman’s talk, Nilekani emphasised the One Infosys Approach, claiming it has contributed to the business’s fastest growth in a decade. He named CEO Salil Parekh as the driving force behind it, claiming that not only did he push for it but he also emphasised it as the company’s primary point of difference. It increased our relevance to their [customers’] agenda and provided them greater confidence in our ability to deliver at a time when their companies were looking for any digital edge they could get to get through difficult times.

“Salil has delivered an industry-leading performance for the company, and it is in the interest of Infosys and its stakeholders to secure the continuity and stability of the current leadership”, Nilekani added.

He added that Infosys has been recognised as the IT services brand with the fastest rate of growth and that the company is benefiting from digital acceleration. According to him, the majority of the company’s sales are now generated by digital. According to him, the company’s strategy also enabled it to scale its personnel and increase recruiting by 2.2X in just two years.

“The One Infosys approach worked to strengthen cultural connect across our talent base, as we scaled our workforce globally. We increased our hiring by 2.2X in just two years, including the 85,000 college graduates we recruited globally over the past year,” he said. The fresher hires were primarily from India.

Salil Parekh, the CEO, claimed that FY22 was a watershed year for the business because it experienced its highest increase in ten years. He said that 59.2 percent of the business’s revenue comes from digital.

In response to inquiries from shareholders, he allayed concerns about the effects of the recession and stated that the company has a robust pipeline of work and will not be affected. We have a pretty good pipeline and are seeing growth, thus we are ready to collaborate with clients. Our growth guidance remains at 13 to 15 percent, and we still have a very solid set of prospects we are working on inside our large deal programme, he said.

The company has begun a new strategy that will put an emphasis on scaling its cloud infrastructure, next-generation seeding, as well as people care and employment, according to Parekh, who said that the previous plan had been successful for the past four years. The company aims to concentrate on new technologies like metaverse and Web 3.0, ESG targets, the European market, and more as part of next-generation seeding, he continued.

According to the CEO, there was widespread growth in all industries during FY22, with manufacturing increasing by just over 40%.