Infosys (INFY - Free Report) recently entered into a long-term partnership with Toyota Material Handling Europe (TMHE) to help the latter in its digital transformation journey.
With this collaboration, Infosys is likely to assist TMHE by enabling its shift to a scalable digital hybrid cloud platform, which will offer application services, digital workplace and infrastructure management.
Moreover, the company will be establishing a data center to aid TMHE in the run-up to its digital transformation.
Per TMHE, backed by next-generation AI and automation solutions, Infosys will enable it drive innovation and optimization agenda.
Digital Transformation: A Key Driver
Infosys has been attempting to reinforce 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. CEO Sahil Parikh has also been focusing more on investments in digital technologies ever since he assumed office.
We note that Infosys is looking to build a strong team of digital specialists in order to cater to clients across all verticals whose key theme remains digital transformation. Reportedly, Infosys has built solutions, driven by AI and machine learning to target digitizing the data supply chain.
IDC expects spending on technologies and services that enable digital transformation of business practices, products and organizations to reach $1.97 trillion in 2022.
We therefore believe that the company’s initiatives in this regard will prove to be very beneficial to its top-line growth going forward.
Infosys Rides on Partnerships
Infosys has been strengthening its core competencies by pursuing strategic collaborations and acquisitions. The company’s alliance strategy is targeted at teaming up with leading technology providers, which allows it to cash in on the emerging technologies in a mutually advantageous and cost-competitive manner.
In order to boost digital, cloud, legacy modernization and automation business, Infosys cemented strategic tie-ups with Adobe, Microsoft, Amazon Web Services and salesforce.com.
Last year, the company in its attempt to target enterprise customers joined forces with Alphabet’s (GOOGL - Free Report) Google Cloud to offer cloud transformation and migration services.
We believe, such efforts in digital-transformation business will leverage the company’s position to compete with its rivals like Accenture (ACN - Free Report) and Cognizant (CTSH - Free Report) .
Infosys currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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