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Infosys (INFY), ServiceNow to Digitize Manufacturers' Factories

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Infosys (INFY - Free Report) recently announced a strategic collaboration with a leading digital workflow company, ServiceNow (NOW - Free Report) , to provide enterprise-level service management for manufacturing industries.

Infosys intends to bank on its industry cloud blueprints, part of Infosys Cobalt, and deploy the ServiceNow Operations Technology Management (OTM), that will help companies in the manufacturing industries in digitizing their factories, floors, and plant operations, the company said in a statement.

Infosys aims to improve the resilience and availability of the critical OT systems across the manufacturing landscape through this collaboration. The company also intends to extend this strategic partnership to address the OTM, factory and operations digitization needs of customers across the energy, retail and CPC sectors.

The latest collaboration 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.

The solid demand for Infosys’ digital services as well as its cloud, Internet of Things (IoT), security, and data analytics solutions is a key growth driver. The company benefits from higher investments by clients in digital transformation across workplaces. This has accelerated amid the pandemic-induced remote-working environment.

Notably, the company’s digital revenues, which contributed 53.9% to the first-quarter fiscal 2022 total revenues, grew 46.9% year over year (42.1% at cc) to $2.04 billion.

Moreover, Infosys’ collaboration with Adobe (ADBE - Free Report) , Google, Microsoft (MSFT - Free Report) , Amazon Web Services and to bolster its digital, cloud, legacy modernization and automation business boosts the firm’s prospects for the long haul.

However, despite the growing traction of its digital services, Infosys has been struggling to adapt to the changing political climate in the United States. It fears that an increase in the 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 carries 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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