Infosys vulnerable To Regional Economic, Regulatory Shifts


Addressing the rising attrition rate is crucial


FinTech BizNews Service

Mumbai, April 18, 2025: Infosys has delivered $19,277 million in FY25 revenues, growth of 4.2% in constant currency. Operating margin was at 21.1%, expansion of 0.5% year on year. Free cash flow was the highest ever at $4,088 million, an increase of 41.8% year on year. TCV of large deal wins was $11.6 billion for the year, with 56% net new. 

Biswajit Maity, Sr Principal Analyst at Gartner, explains the results: “Infosys achieved 4.2 YoY growth in CC, signalling modest performance amid ongoing challenges. Like many peers, the company faced headwinds from subdued discretionary spending, macroeconomic uncertainty, and geopolitical challenges. Despite this, the overall outlook remains positive, supported by a series of large, multi-year deal wins over the past year, driven by consistent delivery of core IT services and expansion into digital transformation. Through its Generative AI platform, Infosys Topaz, the company is advancing enterprise AI and GenAI capabilities and co-innovating solutions with partners. It is also actively repositioning itself—from a traditional low-cost IT services firm to a strategic partner in business transformation. While over 60% of its revenue still stems from North America, leaving it vulnerable to regional economic and regulatory shifts, Infosys is mitigating risk through strategic growth in the Nordics, the Middle East, and Southeast Asia. All these factors are strengthening Infosys’s position as a global IT services leader. Addressing the rising attrition rate is crucial, as increasing workload pressures demand workforce stability to uphold service quality and meet delivery commitments. Any shortcomings in this area could threaten its future growth trajectory.”

 

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