Infosys (INFY - Free Report) has formed a joint venture with Singapore-based Temasek to expand its footprint in Southeast Asia.
Reportedly, Infosys will own 60% of the joint venture while Temasek will hold the rest. The joint venture will be headquartered in Singapore with Infosys’ vice president and regional head in Southeast Asia, Shveta Arora, serving as CEO.
As part of it, operations and the team of Trusted Source Pte Ltd, Temasek’s wholly owned subsidiary in Singapore, will be integrated. Some of Infosys’s employees will also be included eventually.
Win-Win Scenario for Both
Infosys and Temasek both stand to benefit from this alliance. While Temasek looks to enhance its IT services, Infosys is expected to boost workforce capacity. Infosys has been focusing on enhancing the skills of its employees for quite some time now.
Infosys has also been looking to expand its presence in the regions it operates so as to help clients in business transformation. Per Infosys president, Mohit Joshi, "Infosys will leverage its digital skills, learning capabilities and transformation experience to help enhance operations across Temasek's global business.”
On the other hand, Temasek’s CTO Jon Allaway was quoted saying, “The partnership will also help unlock new capabilities and technology platforms that help Temasek as the organization continues our growth as a Singapore-headquartered investor, with a global presence.”
Expansive Measures of Infosys
Infosys has plans to work on areas, including utilization and cost optimization, to boost operational efficiency. Infosys has also been strengthening its core competencies by pursuing strategic collaborations and acquisitions.
The company’s alliance strategy is targeted at collaborating with leading technology providers, which allows it to take advantage of emerging technologies in a mutually beneficial and cost-competitive manner.
Over the past few quarters, Infosys has collaborated with many bigwigs to fortify its portfolio and market share. To boost digital, cloud, legacy modernization and automation business, Infosys has strengthened strategic partnerships with Adobe (ADBE - Free Report) , Microsoft (MSFT - Free Report) , Amazon (AMZN - Free Report) Web Services and salesforce.com.
To boost engineering services, it has collaborated with General Electric to deliver solutions in the field of automation, digital trends and Internet of Things.
Infosys currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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