IT industry to see more consolidation, Infosys stands to gain: Nandan Nilekani

BENGALURU: Infosys chairman Nandan Nilekani said that the company would gain from clients consolidating vendors and drive to cut costs in their business due to Covid-19 pandemic.
“We are definitely going to see a consolidation, all the conversations our leaders have been having indicate that clients want to consolidate and reduce the number of suppliers they have to one or two or three. That works very well for Infosys because they see us as someone stable, long-term, financially very strong and has done a very good job on executing work from home,” Nilekani told Infosys employees in an internal broadcast.

He added that Infosys would be a “net gainer” in this and look at opportunities to reduce cost and automate processes. The tech services major is also eyeing opportunities in services such as helping companies go back to work safely.

Nilekani said Infosys has done “exceptionally well” in navigating this situation and shifting nearly 93% of the near 240000 employees across 40 countries to home during the lockdown.

The Infosys co-founder said the pandemic has taught enterprises globally have to become more resilient. “This crisis has probably been more difficult than any crisis. People are going to reimagine the business model, the lesson that we have learnt from this crisis is that enterprises have to be resilient,” said Nilekani.

Nilekani said enterprises would see a balance between working from office and working from home as around the world billions of people have tested the WFH model two to three months at a stretch. “There will be a new equilibrium, which has an impact on mobility, traffic, the way cities are designed. The collective global experience will leave significant impact,” he said.