Digital transformation has been fuelling growth for IT companies during pandemic with their clients scrambling to use more technology to build resilience. In an interview below, Nilanjan Roy, CFO at India’s top software firm Infosys, discussed the future of digitisation. The finance veteran also shared how Infosys has navigated so far during the pandemic. Edited excerpts.
Q: What do you think about opportunities in digital?
Nilanjan Roy: There is a long way to go in digital. Hyperscalers like Amazon and Microsoft are spending $75 billion a year and this number is growing 20-25 per annually. If one attaches software as a service to this, then there are many companies mushrooming in this domain. Then there are vertical platforms such as financial services, or healthcare, etc.
Our role is clearly laid out. It is how we partner with these companies. We work with them to say what is the best transformation journey? Businesses are not looking at multiple relationships or accountabilities, but they are looking at one company which can stitch together all their requirements, and shift legacy businesses on the cloud. The digital journey is not about lift and shift, it is about lift, transform and then shift.
Infosys is excited about its digital journey. Many companies will have to rapidly digitize as boards and investors are after them today.
Q: What kind of trends are you seeing from your clients amid pandemic?
Nilanjan Roy: Many clients are today willing to talk to us in terms of ability to take out costs from their operations. Boards are asking top management of clients that they must look at these opportunities because these are the game changers for them in cost transformation. So, that’s the one area in terms of cost take out where we see a lot of activity.
The second aspect is related to digital transformation. The pandemic has made it imperative. Industries impacted due to consumer mobility are seeing a change. They are pivoting their business models around digital. For example, how does one sell a car online? This will require a massive transformation. If clients have to become much more consumer-friendly then they will be required to digitize quickly.
Also, with work from home continuing among clients, many of them, operating in different geographies, are asking us to help with collaboration across time zones. Last, vendor consolidation has become an important aspect for especially small enterprises where the resilience of their models is being tested amid pandemic.
CFOs need to be prepared for the new world. Time to act is now. There is a massive opportunity for digital transformation within the finance function.~
Q: Infosys has fared reasonably well during pandemic. What would you attribute this to?
Nilanjan Roy: This goes back to how we built our sustainable growth model and business strategy in 2018-19 when Salil Parekh took over as CEO and navigated the next vision to the clients and clearly said digital transformation will be the heart of future enterprises in the US and around the world. We, therefore, pivoted our entire strategy on that line.
With that, we also had three more elements, localisation, automation and reskilling. So these four building blocks helped us a long way during pandemic.
Q: Looking back, what have been your key priority areas in this pandemic journey?
Nilanjan Roy: Top priority has been safety and wellbeing of our employees. This has been followed by enabling work from home environment and ensuring client deliverables in time.
From the perspective of building financial resilience, we have continued to focus on cash flows and cost management.
Q: Any message to CFOs in this dynamic business environment?
Nilanjan Roy: CFOs need to be prepared for the new world. Time to act is now. There is a massive opportunity for digital transformation within the finance function.
