Software vendor Infosys is mulling to re-price digital services upwards in view of its high value business potential, an executive said on Friday.
“I think we have an opportunity on re-pricing digital services due to the scarce talent. We will relook at the pricing being offered depending on skills and experience,” Infosys Chief Financial Officer Nilanjan Roy told reporters here at a briefing on the company’s performance for the July-September quarter.
The city-based IT major is looking at putting a premium value for offering digital services in view of its growing demand from its global clients.
Revenue ($1,230 million) from digital services contributed 38 per cent to the company’s consolidated revenue of $3,210 million for the second quarter of this fiscal (2019-20), registering a 38 per cent yearly and 11 per cent quarterly growth.
Chief Operating Officer U. B. Pravin Rao said digital services business in India was a small percentage of the overall pie, without quantifying the value.
“India digital business is a small percentage of our overall business in the domestic market. We are selective in what we want to do,” said Rao.
Rao also clarified the digital services business was not facing any headwind in India due to the economic slowdown, as the exposure was smaller in volume and the company being selective in offering it. (IANS)
Emerging digital technologies are expected to generate $1 trillion in economic value for India — spearheading the $5 trillion economy ambition by contributing 20 per cent to the countrys nominal GDP and sustaining 60-65 million jobs by 2025, an EY report said on Monday.
By 2025, India is expected to have 90 per cent Internet penetration with 850 million users, with rural base growing 2.5 times as compared to the urban base, the report added.
“India is at an inflection point — digital has changed the way people communicate, socialize, create, sell, shop and work. India is poised to be a game-changer in the world digital economy by empowering its citizens and revolutionizing businesses,” said Prashant Singhal, Emerging Markets TMT (technology, media and telecom) and Leader, EY.
Digital technologies across sectors such as retail, financial services, healthcare, energy, manufacturing and infrastructure will be fuelling the growth, resulting in employment generation, increased local and regional entrepreneurship and facilitate equitable socio-economic growth.
“Digital economy has the potential to sustain 60-65 million employment opportunities for women, differently-abled people, skilled and semi-skilled workers across digitally enabled businesses in urban, semi-urban and rural areas,” the EY report mentioned.
In the last four years, 268 mobile and mobile component manufacturing units have been set-up, generating 670,000 direct and indirect jobs under the electronic manufacturing initiative.
Domestic electronics manufacturing could generate economic value of $100 billion to $130 billion by 2025, the report said.
The Internet user base in India is expected to reach 627 million by the end of 2019 – second only to China, which is expected to reach about 850 million by 2025.
However, the Internet penetration is at only 36 per cent – indicating significant growth opportunities.
Rural Internet users are expected to increase by 2.5 times, in comparison to the urban internet users – providing a huge impetus for the next big wave of growth.
The Indian e-commerce and consumer internet sectors are expected to reach $200 billion by 2027 and is a significant avenue to provide employment and build entrepreneurship in the country.
“In 2018, the sector raised over $7 billion in PE/VC capital (including venture debt) across approximately 200 deals, and seven companies reached the coveted unicorn status. 2019 has already seen five companies achieve the unicorn status,” the findings showed.