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Infosys (INFY), SAP Tie Up to Provide BPTaaS to Enterprises

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Infosys (INFY - Free Report) recently announced a strategic collaboration with the German multinational software maker, SAP SE (SAP - Free Report) , to provide Business Process Transformation-as-a-Service (“BPTaaS”) to its clients.

Infosys’ BPTaas will aid enterprises to conduct in-depth digital transformation process analysis and evaluate itself against industry peers to recognize areas in need of development.

With this collaboration, Infosys intends to leverage business process intelligence (BPI) from SAP offerings to help the company in identifying obstacles and opportunities in the digital transformation journey of its clients.

Meanwhile, this collaboration will be an addition to SAP’s newly launched ‘Rise With SAP’ offering, BPI being one of its five core elements. Several companies have recently collaborated with SAP for utilizing its Rise with SAP solutions in a bid to expedite their cloud migration.

The software vendor witnessed over 250 new client additions including the likes of Advanced Micro Devices (AMD - Free Report) and EBANX in its last reported quarter. The National Basketball Association, Revlon and Google (GOOG - Free Report) agreed to collaborate with SAP for leveraging RISE with SAP solutions in the months of July and August this year. The company is anticipating total addressable market expansion of $150 billion reaching $600 billion by 2025 end.

The latest move is likely to expand Infosys’ Cobalt portfolio, which helps enterprises in accelerating their cloud journey. Under this set of services, Infosys offers about 14,000 cloud assets and more than 200 cloud solution blueprints.

However, despite the growing traction of its Cobalt portfolio, Infosys has been struggling to adapt to the changing political climate in the United States. It fears that an increase in anti-outsourcing sentiments in countries like the United States and the U.K., might lead to the enactment of restrictive legislations. This, in turn, could limit companies in those countries from outsourcing work and restrict the ability to staff client projects in a timely manner.

Infosys currently has a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.


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