India Markets closed

Infosys Ties Up With ARLANXEO to Aid Digital Transformation

Zacks Equity Research

Infosys INFY has been selected by ARLANXEO, a global market leader in synthetic elastomers, as an IT partner to boost the latter’s Digital Ecosystem Application portfolio.

Infosys will support ARLANXEO’s digital transformation journey with SAP SAP S/4HANA’s assistance as the core platform, which will be leveraged across the organization.

With this partnership, Infosys will deliver IT support and projects for the company's S/4HANA digital ecosystem with a portfolio of SAP cloud and ecosystem applications. Moreover, Infosys will also aid its overall application development.

Furthermore, the company expects this collaboration to expand its footprint in the chemical industry of Europe.

Digital Transformation: A Positive

Infosys has been attempting to strengthen its digital transformation capacities for cementing its position in the highly competitive landscape.

The company is assisting its clients in more than 45 countries to create and execute strategies for their respective digital transformations. CEO Salil Parikh has also been focusing more on investments in digital technologies ever since he assumed office.

Notably, a large number of deal wins and rapidly-growing digital services are constant key catalysts for the company. Strong demand for its services in the cloud, IoT, cyber security, data and analytics is also a major driver. Higher investments by clients in digital transformation, artificial intelligence and automation are an upside as well.

IDC expects spending on technologies and services that enables digital transformation of business practices, products and organizations to reach $1.18 trillion this year, reflecting an increase of 17.9% year over year.

We therefore believe that the company’s initiatives to this end will favor its top line going forward.

Infosys Limited Revenue (TTM)

Infosys Limited Revenue (TTM)

Infosys Limited revenue-ttm | Infosys Limited Quote

Infosys Rides on Alliance Efforts

Infosys has been reinforcing its core competencies by chasing collaborations and acquisitions. The company’s alliance strategy aims at teaming up with foremost technology providers, thereby allowing it to encash the emerging technologies in a mutually beneficial and cost-competitive manner.

In order to boost digital, cloud, legacy modernization and automation business, Infosys consolidated its tie-ups with Adobe, Microsoft, Amazon Web Services and

Last year, the company in its attempt to target enterprise customers joined forces with Alphabet’s GOOGL Google Cloud for offering cloud transformation and migration services.

We believe, such efforts in digital transformation will solidify the company’s position to compete with rivals like Accenture ACN and Cognizant.

Infosys currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Hottest Tech Mega-Trend of All                

Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce ""the world's first trillionaires,"" but that should still leave plenty of money for regular investors who make the right trades early.

See Zacks' 3 Best Stocks to Play This Trend >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
SAP SE (SAP) : Free Stock Analysis Report
Infosys Limited (INFY) : Free Stock Analysis Report
Accenture PLC (ACN) : Free Stock Analysis Report
To read this article on click here.