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Infosys (INFY) Upgrades South Florida Water Management to HANA

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Infosys (INFY - Free Report) recently announced that its United States-based subsidiary, Infosys Public Services (“IPS”), upgraded South Florida Water Management District's (“SFWMD”) Enterprise Resource Planning (“ERP”) system to the SAP S/4HANA platform, thus enabling it to generate actionable, real-time data insights.

SFWMD transitioned to the HANA platform without disrupting its present business processes. This move will enhance SFWMD’s analytical capabilities, increase its efficiencies and make it ready for necessary technological transformations.

The transformation that took less than a year enhanced user experiences with Fiori, while reducing data management cycle times significantly. It improved employee productivity by 10%. The upgradation helped employees in executing transactions quickly and shifting focus to high value tasks, thereby resulting in productivity boost.

It is worth mentioning that Infosys has been strengthening its digital-transformation capabilities to expand and solidify its position in the highly competitive environment. It 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 peers like Accenture (ACN - Free Report) and Cognizant (CTSH - Free Report) .

However, Infosys is grappling with 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 remains a major concern.

Zacks Rank & Stock to Consider

Infosys currently carries a Zacks Rank #3 (Hold). Its aforementioned peers, Accenture and Cognizant carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The long-term estimated earnings growth rate for Infosys, Accenture and Cognizant are pegged at 10%, 10% and 11%, respectively. Year-to-date, INFY, ACN and CTSH have gained 39.2%, 41.6% and 0.1%, respectively.

A better-ranked stock in the broader technology sector is Advanced Micro Devices (AMD - Free Report) carrying a Zacks Rank #2.  The long-term estimated earnings growth rate for AMD is pegged at 46.2%. The stock has rallied 69.5% in the year-to-date period.

The Zacks Consensus Estimate for Advanced Micro Devices’ fourth-quarter 2021 earnings has been revised upward by 8 cents to 76 cents per share over the past 30 days. For 2021, earnings estimates have moved upward by 15 cents to $2.65 per share in the last 30 days. Advanced Micro Devices’ earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 14%.