Bangalore, June 9 (IANS) India's IT bellwether Infosys Ltd. is on a course correction to align with the paradigm shift in technology business to products and platforms from services business, its chairman K.V. Kamath said Saturday.
"We have embarked on a course correction as the technology industry is going through a paradigm shift to products and platforms from traditional services business," Kamath told reporters.
Noting that course correction would take a longer time to yield results, he said the global software major was bracing up to face the emerging challenges in the technology space, economy and volatile currency markets.
"Course correction cannot be done in eight months. It is a process, which will take time to succeed. Though last fiscal (2011-12) was a volatile year for technology business, we faced the challenges and fared better," Kamath said on the margins of the company's 31st Annual General Meeting (AGM) here.
The paradigm shift in technology business had led to the blue chip company's revenue share from software services such as application development drop to 40 percent from 90 percent earlier.
"We are responding to the challenges by aligning our business strategies with the changing requirements of our global clients. Products and platforms are the new wave we are focusing on to move up the value chain in a competitive environment," Kamath admitted.
Sharing the concerns of investors on the company's lower revenue forecast for current fiscal (2012-13), he said the management was confident of turning the tide with high quality growth translating into higher revenue productivity.
On complaints from institutional investors, fund managers and analysts that the company was not aggressive in growing business unlike its peers such as TCS, Wipro and Cognizant, Kamath said the executive management drew the business plans and the board acted like a sounding board for executing them.
"A non-executive chairman is a hands-off chairman who has a particular role of governance," Kamath observed.
Asked why the company had not made any acquisition in last fiscal, he said a buyout does not happen overnight and the process requires careful assessment of its strategic fit, return and business considerations.
"Acquisition has to be meaningful so that we don't waste shareholders' money. I can assure them (shareholders) that we are looking for right opportunities to grow organically and inorganically," Kamath added.