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Growth through differentiation

What is the charter for BITS as a re‑invented growth engine for Infosys 3.0?

The objective of Infosys Business IT Services (BITS) is to work with clients worldwide through the efficient running of their IT operations. Our charter is to partner with clients in their journey towards unlocking greater efficiency from their existing IT assets – systems, processes and infrastructure. With BITS, clients gain sustained operational superiority with the ability to significantly differentiate themselves in the marketplace.

In the Infosys 3.0 journey, is the focus on BITS lower than earlier?

No. BITS is integral to the execution of the Infosys 3.0 strategy. The emphasis on BITS enables us to build deeper and sustainable client relationships, bring innovation into business processes, reduce costs and bring in overall visibility and predictability in our revenues.

Is BITS an independent service line now?

Clients continue to buy our individual services – Application Development and Maintenance, Testing, Infrastructure Maintenance and BPO. However, we have organized ourselves as single group to generate and deliver combined efficiencies to the client. Furthermore, the vertical alignment of BITS brings in the added advantages of domain flavor and scale of deployment. These factors play a crucial role in determining the applicability of offerings and the ease of deployment for clients across different verticals.

How does BITS plan to increase client relevance and help streamline their IT operations?

Growth through differentiation, especially in our core business functions, is the focus area for us. It is also important to be relevant to our clients in every sphere of their business. Infosys 3.0 in the context of BITS ensures that every member of BITS has a thorough understanding of the clients' businesses, challenges and expectations, to be the new change agents.

Today, clients spend their IT budgets across three major areas:

  • To transform their business
  • To innovate in their business
  • To optimize costs of running their business

Currently, more than half of our clients' annual IT budget is spent on running and maintaining existing business applications – essentially operations that support today's business demands. This spend is critical to clients.

Our aim is to help our clients better utilize their existing IT budgets to develop or enhance systems to support the business velocity, while reducing costs so that the savings may be allocated for discretionary programs.

Our focus is on doing more with less, enabling efficiency and providing the compounding value of business optimization, thereby transforming our clients' businesses.

What are the significant focus areas for BITS?

The focus areas for BITS are to provide best-in-class services ranging across application development, application maintenance, independent testing and large-scale IT infrastructure rationalization. Our clients are keen on optimizing their IT spends, directed towards business operations. We are completely focused on helping them do so.

What is the market opportunity for these services?

The worldwide outsourced market for BITS is estimated to be over US $450 billion in 2012 and is expected to grow by 4% CAGR between 2012 and 2015. As the need for Business Optimization grows among our clients, it directly translates to clients spending on our business IT service lines of Application Development and Maintenance, Testing and Validation and Infrastructure services. We strongly believe that clients in the mature U.S. markets will look to us to help them better manage core and non-core business operations through judicious use of IT and BPO. Similarly, in Europe and the Rest of the World, we expect clients to utilize BITS services towards structuring IT spends better to meet business demands.

Further, the establishment of BITS is allowing us to open up new service lines. For example, end-to-end Infrastructure Testing service is born out of the combination of two of our most successful service lines – Infrastructure Management and Independent Validation Services. The solution aims to help clients undertake migrations to cloud, combine data centers or acquire new assets more effectively.

It is estimated by industry analysts that 60-64% of client IT spending happens to run and optimize the business, which is directly supported by our BITS and BPO services.

What are we doing differently in this space to accelerate growth?

Given that our service lines comprise our core business, we believe each line individually holds a lot of relevance to our clients. Hence, it is absolutely essential to continue to invest and grow innovation in each service line. A testament to this is the constant and ever increasing IP that we continue to generate in each service line, while keeping client requirements at the center of all our innovation plans.

However, we are committed to providing our clients innovation not just within each service line but also across. We can deliver value by innovating at the intersection of the existing service lines. We strongly believe that the next level of business efficiencies will be released from this kind of innovation.

Further, the new horizontal and corporate alignment of BITS creates a very strong structure to enable faster innovation and rapid deployment. In our new structure, 'client intimacy' is delivered through vertical axis and 'cost efficiency' is derived through the horizontal axis.

How are clients impacted by the creation of BITS?

IT buyers typically do not buy all their business IT services from a single services company. They prefer a multi-sourcing strategy, associating certain services with certain companies. Research shows that traditional buying patterns change during atypical situations like a tough economic environment that mandates CIO budget cuts, without disrupting discretionary IT spending.

The combined service suite of BITS targets this inflection point. BITS as a combined service line offers optimization benefits that individual service lines cannot. In addition, our differentiated offerings within and across individual service lines will bring in a much-needed freshness.

Chandrashekar Kakal

Senior Vice President and Global Head of Business IT Services

With Business IT Services, clients gain sustained operational superiority with the ability to significantly differentiate themselves in the marketplace.

BITS aids end-to-end Business Optimization

Malcolm Beane

Chief Operating Officer, Brit Insurance

"This strategic relationship will bring Brit Insurance increased scalability, flexibility and operational effectiveness to support our core business areas of underwriting, claims and investment management while allowing us to retain strategic leadership and ownership. We are looking forward to working with Infosys, which is a global provider of consulting and technology services with a proven track record of delivery."

Integrated approach for an end-to-end engagement with Brit Insurance

We have been selected by Brit Insurance, an international general insurance and reinsurance group specializing in commercial insurance, to help streamline their IT and business processes as part of their strategy to focus on core business objectives. The engagement positions us as the single partner responsible for the end-to-end management of Business Processes, Application Development and Maintenance, and Infrastructure Services – in other words, effectively responsible for supporting the entire IT operations of Brit Insurance.

The move will see a number of non-customer facing operational and IT activities, including IT infrastructure support and applications management and development being transferred to us. We will be supporting core business areas of underwriting, and other related administrative processes.

Our focus on cross service functions of Service Management, Transition, Transformation and Service Improvement is expected over time to help optimize IT Operations for the client. Apart from process improvement, we will help the client consolidate multiple vendors for Network and Data Center hosting services with the aim of delivering further cost reductions. We will also be providing process consolidation for the client, based on Information Technology Infrastructure Library (ITIL) principles designed to further improve service levels.

This win is a validation of our integrated industry solutions approach in improving client experience.