Back to top

Image: Bigstock

Infosys (INFY) to Aid Frost bank in Providing Mortgage Services

Read MoreHide Full Article

Infosys (INFY - Free Report) recently collaborated with one of the largest banks in the United States, Frost Bank, which is a subsidiary of CullenFrost Bankers (CFR - Free Report) . Per the five-year contract, Infosys will offer digital technologies and strategic business consulting services to Frost Bank, which will allow the latter to provide mortgage loan and other consumer loan offerings.

The India-based IT services provider will design the Frost Bank’s mortgage loan process landscape. This collaboration will enable Frost Bank to provide enhanced end-customer experiences, while ensuring operational efficiency in the mortgage loan processing.

Infosys Focuses on Developing Strategic Partnerships

Infosys has been strengthening its core competencies by pursuing collaborations and acquisitions. Its alliance strategy is targeted at teaming up with leading technology providers, which enables it to capitalize on the emerging technologies in a mutually advantageous and cost-competitive manner.

Lately, the company has been gaining from large deal wins and fast-growing digital services. It reported revenues of $3.78 billion in first-quarter fiscal 2022, up 21.2% primarily on account of large deal wins.

During the fiscal first quarter, the next-generation digital and consulting service major signed multiple large deals worth $2.6 billion. Digital revenues accounted for over 50% of its total revenues.

With the COVID-19 pandemic accelerating the digital transformation process, the latest Mordor Intelligence report states that the global digital transformation market is expected to reach approximately $274 trillion by 2026, witnessing a CAGR of 18.5% during the forecast period (2021-2026).

Infosys has been reinforcing its digital-transformation capabilities for expanding and solidifying its position in the highly competitive environment. The company is enabling its clients across more than 45 countries to create and execute strategies for their digital transformation.

Such efforts in the digital-transformation business will help the company to compete with its peers like Accenture (ACN - Free Report) and Cognizant (CTSH - Free Report) .

However, Infosys is suffering from increasing anti-outsourcing sentiments in certain countries. Higher subcontractor costs and the company’s compensation revision with a higher variable pay and incentives are weighing on margins. Further, currency volatility between the India rupee and the U.S. dollar is a major concern.

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

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