The Indian business unit of Infosys, which gets majority of its revenues from the public sector, is targeting to increase the private sector contribution to its revenues to 50 per cent in the next couple of years.
Talking to The Hindu , C. N. Raghupathi, Vice-President and Head, India Business, Infosys, said, “What we would like to do in the future is improve contribution of private sector to our business. That is important both from a portfolio as well knowing the entire country perspective.”
The government has been one of the most vital segments for Infosys’ India Business, which entered the domestic market much after its peers. The public sector at present accounts for 75 per cent of the unit’s revenue, while the balance comes from the private sector.
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“Ideally, we would like to have a 50-50 mix, but we would like to wait and watch as we are venturing into a new territory. We also have to see how the new government opens up. I believe the new government is well disposed to information technology in the government sector. So, as of now within the next 1-2 years, we want to make it a 50-50 split,” he added.
One of the reasons for the larger contribution to the company’s revenue by the sector is that deal sizes in the government sector are much bigger at about Rs.100-200 crore per deal, as compared to the private sector, where the size is much less.
As of now, the Indian Business unit contributes around 2 per cent to Infosys’ overall earnings. On growth, Mr. Raghupathi said, “Infosys makes about 2 per cent of its business from India. How do I see it in future, I would rather answer that question six months from now. At this moment there are high expectations… But we will have to wait and watch.”
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Some of the big projects that the India Business unit has worked on include, Income Tax project, where the company did processing of transactions.
“Today, the total tax base is 3.2 crore and 2.8 crore passes through our system,” said Mr. Raghupathi.