Infy set to invest more in AI, analytics
BENGALURU: Infosys Ltd is looking to partner with companies that offer data analytics or artificial intelligence (AI) platforms including International Business Machines Corp (IBM), but has no plans to abandon its own Nia platform. India’s second largest software services firm is seeking to use these platforms to help it win more business from customers.
Infosys wants to scale up the business model that allows it to sell a cognitive platform that will help its Fortune 500 clients run their businesses more efficiently. For this reason, the firm wants to sell solutions like IBM Watson along with its service offering, an executive with direct knowledge of the development said.
Infosys, under CEO Vishal Sikka, who stepped down in August, had earlier made its own proprietary AI platform, Nia (formerly called Mana), the cornerstone of its strategy of transforming itself into a new-age services company. Although the company said it remains committed to its own platform too, Infosys is in discussions with IBM and other companies that have cognitive platforms, which would allow Infosys “to have a more differentiated offering as we seek to win more contracts,” the first executive cited above said on condition of anonymity.
Infosys did not answer a question on the company’s plan of partnering with IBM, saying: “A thriving alliance and innovation ecosystem is integral to this strategy to deliver compelling business outcomes for our customers leveraging an integrated portfolio of solutions”
An email sent to IBM seeking comment went unanswered.
Sikka, three years after taking over as the company’s first nonfounder CEO, resigned on August 18, after long-running criticism by Infosys’ founder NR Narayana Murthy. Co-founder Nandan Nilekani then returned as nonexecutive chairman. Infosys appointed UB Pravin Rao as interim CEO even as a search continues for Sikka’s successor.
Some experts gave the thumbs-up to Infosys’ change of heart in seeking partnerships with other companies. “It is a smart move,” said Phil Fersht, CEO of US-based HfS Research, an outsourcing-research firm. “Infosys has very strong analytics capabilities, so partnering with Watson makes sense. I expect Infosys to be working across analytics/cognitive platforms based on client needs.”
Infosys for now said that it remains committed to its earlier strategy and the firm does not have any plans to discontinue Nia. “Not only is this strategy on track, we are also looking at a strong integration between the two and categorically deny that there has been any defocusing of leadership of the Nia organisation,” a spokesperson said.