MUMBAI: Infosys Ltd Executive Vice Chairman S. Gopalakrishnan acknowledged that the company’s focus on emerging technologies under its Infosys 3.0 strategy had diluted its attention on its core business and that it had run the risk of being “too early” to change its business strategy. Infosys had come up with the 3.0 strategy in 2011, shifting its focus to products, cloud computing, mobile, analytics and other next generation technologies.
“We underestimated the effects of the adoption of these new technologies and the change in the business model,” Gopalakrishnan said in a prelude to the Infosys Annual Report 2012-13. He said the newer services created smaller projects since many of the engagements were pilots, and changed the revenue profile of the company. “Our traditional business IT services slowed down, perhaps due to a lack of focus,” he acknowledged, going on to point out that Infosys’ revenue growth plunged from 25.8% in the year ended March 2011 to 15.8% in the next and 5.8% in the year ended March 2013.