Infosys (INFY) BPM & IBM Launches Center of AI and Automation – November 15, 2022

Infosys‘(INFY Free Report) wholly-owned subsidiary, Infosys BPM, recently announced that it has unveiled a Center for AI and Automation at the company’s Business Intelligence Group in Poland, in collaboration with Global Business Machines (IBM Free Report) , to enhance the digital capabilities of global enterprise customers in AI and hybrid cloud environments.

The newly opened business unit features a collection of data and artificial intelligence (AI) solutions designed to automate and accelerate the hybrid cloud transformation of enterprises worldwide. Enterprises need to be able to address complex business process challenges at scale across regions and industries. This, in turn, helps optimize the enterprise cost structure and improve productivity and user experience.

The center allows Infosys and IBM clients to analyze workflows, design AI-enabled apps and low-code tools, assign tasks to robots, and track tasks at going. In addition, they engage in a variety of digital solutions across data, AI, and automation areas. Some of those solutions include Infosys Intelligent Document Processing, Infosys Interaction Analytics, Infosys Multilingual Conversational AI, Infosys Accounts Payable on Cloud, Infosys Cortex, Infosys Material Master Harmonization, and Infosys Data Workbench from Infosys BPM.

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The portfolio also includes IBM CloudPak for Data, IBM Watson Assistant & IBM Watson Discovery, IBM SaferPayments, IBM Blockchain, IBM Sterling Supply Chain, IBM Risk and Fraud Detection software, and Envizi for Sustainability.

Infosys BPM’s Center of AI and Automation, celebrating a two-year agreement with IBM, has been launched to celebrate the subsidiary’s 15th anniversary.

Infosys is strengthening its digital transformation capabilities to expand and strengthen its position in a highly competitive environment. It enables its clients across 45 countries to create and manage their digital transformation strategy. These efforts in the digital transformation business will help the company compete with peers such as Accenture and Cognizant.

In September, Infosys partnered with Bpost (Belgium Post), a postal operator and e-commerce logistics provider headquartered in Brussels, to provide cloud security solutions that identify and provide rapid response to suspicious security events.

In the same month, Infosys partnered with Spirit AeroSystems, Inc., one of the world’s largest manufacturers of aircraft for commercial aircraft, defense platforms, and business/regional aircraft. Under the five-year contract, the IT company intends to provide aerostructure services and technical systems for the product development of commercial, business and emerging aviation projects.

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Back-to-back contract wins are driving Infosys’ top performance. In its latest financial results for the second quarter of 2023, the company’s revenue rose 13.9% year over year to $4.56 billion.

However, Infosys’ growth prospects may be hit as management delays its plans to invest in high-tech and high-cost products due to growing global concerns in the macroeconomic challenges and geopolitical tensions. Additionally, high operating expenses related to hiring new employees and marketing and sales strategies to capture market share are likely to erode margins in the near term.

These, along with the rapid rise of Internet-based software, have disrupted Infosys’ traditional legacy business. These challenges can weigh on the company’s future profitability.
Shares of INFY are down 18.6% while IBM jumped 21.8% over the past year.

Zacks Rank & Stocks to Consider

Infosys and IBM hold the Zacks List #3 (Included).

Some of the best sites are in the Computer and Technology sector in general Celestica (CLS Free Report) and Fabrinet (FN Free Report). While Celestica boasts a Zacks Rank #1 (Strong Buy), Fabrinet holds a Zacks Rank #2 (Buy). You will see The full list of today’s Zacks #1 stocks is here.

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The Zacks Consensus Estimate for Celestica’s fourth-quarter 2022 earnings has increased by 9 cents to 53 cents per share over the past 30 days. For 2022, it is up 16 cents to $1.86 per share in the last 30 days.

CLS’s earnings beat the Zacks Consensus Estimate over the past four quarters, by a margin of 11.8%. The company’s shares are up 1.1% over the past year.

The Zacks Consensus Estimate for Fabrinet’s second-quarter 2023 earnings has been revised up 16 cents to $1.89 per share over the past seven days. For fiscal 2023, shares have risen 7.6% to $7.48 per share in the past seven days.

FN’s earnings beat the Zacks Consensus Estimate in three of the past four quarters, missing once, and the average surprise was 5.4%. The company’s shares have gained 5.4% over the past year.


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