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Infosys Ties Up With ARLANXEO to Aid Digital Transformation

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Infosys (INFY - Free Report) has been selected by ARLANXEO, a global market leader in synthetic elastomers, as an IT partner to boost the latter’s Digital Ecosystem Application portfolio.

Infosys will support ARLANXEO’s digital transformation journey with SAP (SAP - Free Report) S/4HANA’s assistance as the core platform, which will be leveraged across the organization.

With this partnership, Infosys will deliver IT support and projects for the company's S/4HANA digital ecosystem with a portfolio of SAP cloud and ecosystem applications. Moreover, Infosys will also aid its overall application development.

Furthermore, the company expects this collaboration to expand its footprint in the chemical industry of Europe.

Digital Transformation: A Positive

Infosys has been attempting to strengthen its digital transformation capacities for 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, a large number of deal wins and rapidly-growing digital services are constant key catalysts for the company. Strong demand for its services in the cloud, IoT, cyber security, data and analytics is also a major driver. Higher investments by clients in digital transformation, artificial intelligence and automation are an upside as well.

IDC expects spending on technologies and services that enables digital transformation of business practices, products and organizations to reach $1.18 trillion this year, reflecting an increase of 17.9% year over year.

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

Infosys Rides on Alliance Efforts

Infosys has been reinforcing its core competencies by chasing 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 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 for offering cloud transformation and migration services.

We believe, such efforts in digital transformation will solidify the company’s position to compete with 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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