Bangalore: IT bellweather Infosys is on course correction to cope with paradigm shift in technology business from traditional services business to products and platforms, its Chairman K V Kamath Saturday said.
"The course correction cannot be done in eight months and can be done over a long period of time. Last year has been volatile for technology business and Infosys is responding to these challenges," he told reporters on the margins of the company's 31st AGM here.
He said there was a paradigm shift in technology business and Infosys was taking appropriate steps to take care of it.
"You heard (CEO S D) Shibu(lal) say Platforms and Products is the new wave which we are focusing on. The application development business has dropped from 90 percent to 40 per cent which has prompted IT companies to move up the value change to products and platforms," Kamath said.
Kamath said all concerns raised by the shareholders need deep consideration and the CEO had taken pains to explain the company strategy.
"It is not that the company doesn't look at all options. In what he reiterated was our path we chose was high quality growth which means that high revenue productivity so that we don't run into a situation where we are only relying on people," he elaborated.
Asked why Infosys is not showing aggressiveness in business, Kamath said a non-executive chairman is a handsoff chairman who has a particular role of governance.
Having said that it is the executive management which comes out with strategies and the board acts as a sounding board for the strategy and that process is going on, Kamath said.
In response to the initiatives taken by the government to boost the economy, Kamath said instead of bigbang policy shift, there was a requirement of incremental policy changes on variety of issues. "If this happens, we will have the economy on growth path," he said.
Moreover, the sentiments of business confidence was turning better in the last one month, Kamath said. "Industry is going through a paradigm shift and all companies will have to reinvent themselves and that's what Infosys is doing."
On acquisition front, Kamath said, "Acquisition doesn't happen overnight. Acquisition should be strategy fit and has to have right returns.
"It has to have meaning so that you don't waste shareholders money. And that's clearly what the management is looking at. I can assure that they are looking into the promises wider and deeper at more opportunities," he said.
First Published: Saturday, June 09, 2012, 21:58