In­dia’s In­fosys eyes AI prof­its

Muscat Daily - - BUSINESS -

Ban­ga­lore, In­dia - In­dian IT gi­ant In­fosys said on Fri­day that Ar­ti­fi­cial In­tel­li­gence (AI) was key to fu­ture prof­its as it bids to sat­isfy clients’ de­mands for in­no­va­tive new tech­nolo­gies.

In­dia’s multi-bil­lion-dol­lar IT out­sourc­ing sec­tor has long been one of the coun­try’s flag­ship in­dus­tries. But as ro­bots and au­toma­tion grow in pop­u­lar­ity its com­pa­nies are un­der pres­sure to rein­vent them­selves.

“We are re­veal­ing new growth with ser­vices that we [have been] fo­cus­ing on for the past cou­ple of years in­clud­ing - AI and cloud com­put­ing,” said In­fosys chief ex­ec­u­tive Vishal Sikka, an­nounc­ing a small rise in quar­terly prof­its.

“Go­ing for­ward, we will count on strong growth com­ing from th­ese ser­vices,” added Sikka, who sig­nalled his in­tent by ar­riv­ing at the press con­fer­ence in a driver­less golf cart.

In­fosys re­ported an in­crease of 1.4 per cent in con­sol­i­dated net profit year-on-year for the first quar­ter, marginally beat­ing an­a­lysts’ ex­pec­ta­tions.

Net profit in the three months to June 30 came in at R34.83bn, marginally above the R34.36bn it re­ported in the same pe­riod last year, In­fosys said.

In­dia’s US$150bn IT sec­tor is fac­ing up­heaval in the face of au­toma­tion and US Pres­i­dent Don­ald Trump’s clam­p­down on visas, with re­ports of mass re­dun­dan­cies.

In­dus­try body Nass­com re­cently called on com­pa­nies to teach em­ploy­ees new skills af­ter claims they had failed to keep up with new tech­nolo­gies.

In April In­fosys launched a plat­form called Nia to ‘help clients em­brace AI’.

‘Nia con­tin­ues to be cen­tral to all our con­ver­sa­tions with clients as we work with them to trans­form their busi­nesses’, the com­pany said in its earn­ings state­ment on Fri­day.

An­a­lysts sur­veyed by Bloomberg had ex­pected prof­its of R34.3bn.

In­fosys an­nounced rev­enues of R170.78bn, marginally up from the R167.8bn re­ported for the same pe­riod last year. Its shares rose nearly three per cent in early trade af­ter the com­pany fore­cast rev­enue growth of be­tween 6.5 to 8.5 per cent for the cur­rent fi­nan­cial year.

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