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Infosys (INFY), Amazon Tie Up to Explore Quantum Computing

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Infosys (INFY - Free Report) recently announced a strategic collaboration with the leading cloud infrastructure-as-a-service provider, Amazon’s (AMZN - Free Report) Amazon Web Services (“AWS”), to develop quantum computing capabilities for its enterprise customers.

As part of the partnership agreement, Infosys will use Amazon Braket to develop various quantum computing use cases across multiple areas including vehicle route optimization and fraud detection.

Amazon Braket is a tool under AWS, which is used to build, test, run and analyze quantum algorithms. Infosys is exploring various quantum computing use cases from sectors like logistics, finance and telecom. The company will provide this quantum computing use case service under its Infosys Cobalt cloud offerings.

This move will aid Infosys’ enterprise clients to assess new ideas and plan strategies for future growth. The clients will be allowed to experiment and explore quantum computing, which in turn will provide them new ideas for growth and help them adopt strategies that drive innovation.

Infosys’ Cobalt portfolio, which helps enterprises in accelerating their cloud journey, expands further with this collaboration. Under this set of services, Infosys offers about 14,000 cloud assets and more than 200 cloud solution blueprints.

The company 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, despite the growing traction of its Cobalt portfolio and the strengthening of its digital-transformation capabilities, 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.