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Infosys, Microsoft Coordinate on Smart Buildings Solutions

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Infosys (INFY - Free Report) recently announced that it is collaborating with Microsoft (MSFT - Free Report) to develop smart buildings and spaces (SB&S) solutions. These will be largely beneficial in the architecture, engineering, construction, facilities management and real estate development markets.

The solutions, built on Azure, Internet of Things (IoT) and intelligent cloud and edge technologies, will cover building system monitoring, analysis and predictive maintenance plus building occupancy and space utilization analytics.

The solution uses human and artificial intelligence to reduce costs massively and help expedite the design of digital workspaces that respond to human activity.

The combination of Microsoft’s Azure services with IoT enabled devices and Infosys’ innovation hubs, experience design and expertise in building connected ecosystems will result in a solid set of SB&S solutions, which will improve energy, space and cost efficiency.

In order to develop the solutions, Infosys and Microsoft are also set to open an Innovation Lab in Redmond. The lab will be part of the Infosys Smart Workplace Hub in Indianapolis.

Growth Drivers for Infosys

Infosys’ focus on Agile Digital and AI-driven Core services is a tailwind. The company is benefiting from growth across geographies and business segments.

Higher spending on digital, analytics, cloud, cybersecurity and other new technology domains is a key catalyst for the company. Infosys expects Communication business to witness a consistent performance in fiscal 2020. Investments in this sector are centered on adoption and the deployment of 5G, leading to an advanced enterprise IoT.

Per IDC, worldwide expense of the IoT is expected to reach $745 billion in 2019, attributable to the Manufacturing, Consumer, Transportation and Utilities sectors. This projection bodes well for Infosys, which is ramping up its efforts to boost its presence in this space.

Partnerships Propel Growth

Infosys has been strengthening its core competencies by pursuing strategic collaborations and acquisitions. The company is benefiting from solid deal wins, geographical expansions and business segmental growth.

The company’s alliance strategy targets collaborations with leading technology providers, thereby allowing it to take advantage of the emerging technologies in a mutually beneficial and cost-competitive manner.

Recently, Infosys’ subsidiary EdgeVerve Systems partnered with the independent spend-management company JAGGAER wherein EdgeVerve will be developing software products for JAGGAER customers in the manufacturing, retail, logistics and higher education industries.

Moreover, in a bid to solidify its mortgage servicing capabilities across Europe, the company recently announced that it is entering into a strategic partnership with Amsterdam-based ABN AMRO.

Further, Al Ahli Bank of Kuwait selected Infosys’ unit EdgeVerve Systems to automate its operational processes using the AssistEdge RPA platform.

Last September, Infosys formed a JV with Singapore-based Temasek to fortify its footprint in Southeast Asia.

Such key collaborations are likely to steadily drive Infosys’ growth momentum.

Zacks Rank & Stocks to Consider

Infosys currently has a Zacks Rank #3 (Hold). Two better-ranked stocks in the broader Computer and Technology sector are Silicon Motion Technology Corporation (SIMO - Free Report) and Cirrus Logic, Inc. (CRUS - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Long-term earnings growth rate for Silicon Motion and Cirrus is projected to be 5% and 15%, respectively.

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