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Infosys Ties UP With Volvo Cars for Digital Transformation

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Volvo Cars has selected Infosys (INFY - Free Report) to accelerate digital transformation services for its Enterprise Digital Commercial Operations Applications and Products.

Reportedly, with this tie-up, Infosys will provide cutting-edge application services by utilizing its Global Delivery Model (GDM), fast delivery, automation and other service optimization levers to offer effective service operations.

Further, based on the Scale Agile Framework (SAFe), Infosys will facilitate transition of application management and application development deliveries to a 100 percent swift operating model.

Infosys’ association with Volvo Cars goes back a long time. Earlier in 2014, the company signed a multi-year contract with Volvo Cars to provide software application development services for the latter’s global operations.

Talking about this latest alliance, Infosys management stated, “The association with Volvo Cars reaffirms our strategic commitment to offer an industry leading and localized solution to drive its digital transformation agenda to achieve the strategic business goals."

Digital Transformation: A Positive

Infosys has been attempting to strengthen its digital transformation capacities for expanding cementing its position in the highly competitive landscape.

The company is assisting its clients in more than 45 countries to create and execute strategies for their respective digital transformations. CEO Salil Parikh has also been focusing more on investments in digital technologies ever since he assumed office.

Notably, large deal wins pouring in greater numbers and rapidly-growing digital services remain key catalysts for the company. Strong demand for its services in the cloud, IoT, cyber security, data and analytics is a key driver. Higher investments by clients in digital transformation, artificial intelligence and automation are an upside.

Recently, the company unveiled its strategic program Innov8 to boost its digital transformation of enterprises using SAP SE (SAP - Free Report) digital solutions.

IDC expects spending on technologies and services that enables digital conversion of business practices, products and organizations to reach $1.97 trillion in 2022.

We therefore believe that the company’s initiatives to this end will favor its top line going forward.

Infosys’ Alliance Efforts Augur Well for Growth

Infosys has been reinforcing its core competencies by chasing strategic collaborations and acquisitions. The company’s alliance strategy aims at teaming up with foremost technology providers, thereby allowing it to encash the emerging technologies in a mutually beneficial and cost-competitive manner.

In order to boost digital, cloud, legacy modernization and automation business, Infosys consolidated its 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 will leverage the company’s position to compete with its rivals like Accenture (ACN - Free Report) and Cognizant.

Infosys currently has 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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