Infosys‘ Australia revenue has crossed $1 billion, making it the third largest export market for the software services company, its top executive said.
The Bengaluru-based firm gets 85% of its revenue from the US and European markets. “Australia has now become over a billion dollar in business on its own, (and) a very large market (for us),” Salil Parekh, chief executive officer, told ET. “We have also built strategic partnerships in Japan and Singapore. So, more opportunities there.”
Currently, the US generates 61.65% of the tech services company’s $11.8 billion revenue, while Europe contributes 23.6%.
The IT services provider focuses on digital transformation at government agencies in the Asia Pacific region, while banking and financial services is another important business segment.
Infosys, which said last year it would create 1,200 jobs in Australia, has also partnered with Tennis Australia as the digital innovator for the Australian Open.
Analysts, however, said Australia has been a small market and IT services players have seen growth stagnate beyond a point. Like other tech services players, “the size and dynamics of the market make it impossible for Infosys to continue this fast growth for an extended time”, said Peter Bendor-Samuel of Everest Group, IT Advisory firm.
“The market has long been open to outsourcing and the use of third-party IT services, it is also a market which moves as a pack. Hence, firms quickly grow fast to about a billion (dollars) and then stop as the size of the market constrains growth,” he said.