Infosys is going to make an additional $1.5 billion in revenues via acquisitions

India’s second largest software exporter Infosys expects acquisitions can bring in additional revenues of about $1.5 billion as the IT services behemoth aims to achieve a goal of generating $20 billion by 2020. The company is also aiming to bring attrition levels down to the lowest in the industry in the same time frame.

These targets include increasing revenue per Full Time Equivalent to $80,000 by deploying automation and innovation in existing businesses and inorganic investment strategies influencing approximately $1.5 billion of new revenue, according to PTI.
"The mission of our management is to prepare the company to achieve an aspirational goal of $20 billion in revenue by calendar year 2020 with at least 30% operating margin with specific targets," Infosys CEO Vishal Sikka said in the company's annual report.
The IT firm has already acquired some companies in the past few months. It announced its first major acquisition in February under Sikka, who had taken over as CEO in August 2014, of New Jersey-based automation technology firm Panaya for $200 million.
In April, Infosys made another large acquisition and bought Kallidus (also known as Skava) for $120 million.
The Bengaluru-based company has been scouting for innovative companies in areas like automation and artificial intelligence. The IT firm has already said it is open to 'bigger scale' mergers and acquisitions but with a caveat, it is not interested in "yesterdays" companies.
Sikka said new services like design thinking, solutions in artificial intelligence and intellectual property-led businesses are expected to contribute at least 10% of Infosys' revenues.
Infosys would also focus on building a vibrant ecosystem "from the ground up by investing in, incubating and growing innovative startups and companies that will help define the next generation of services and business models," he added.
Once the bellwether of Indian IT industry, the company lagged behind its peers like Tata Consultancy Services and HCL Technologies in terms of growth.
Moreover, it also faced a series of senior level exits that the company has now capped with a series of measures like promotions and increments.
The target would also be "bringing attrition levels down to the lowest in the industry and achieving at least 25% in diversity in our top leadership", Sikka said.
On standalone basis, the attrition rate for fiscal 2015 stood at 18.9% compared with 18.7% in the previous fiscal.
Infosys has over 1.76 lakh employees with the addition of 15,782 (net) people. Sikka also expressed confidence that the company can grow at 10-12% rate in the ongoing fiscal.
(Image: Reuters)