Infosys under product revamp, aim $2 billion revenue by 2020

With an aim to generate $2 billion annual revenue from its products and services by 2020, Infosys is undergoing a restructuring under the guidance of Michael Reh, Infosys Executive Vice President, CEO (designate), EdgeVerve.

As a part of restructuring, the firm will increase investments to strengthen banking software Finacle's footprint in the US, spend more on marketing brands and focus on building new sets of products and solutions.

Currently, the firm has huge hopes from Reserve Bank of India (RBI) who will be announcing the new licenses for building a new banking product under its (financial institution’s) Finacle umbrella for new-age payments banks. The financial institution had invited applications for this task early this year has received applications from many including Infosys.

Michael Reh, in an interview has said, "The new banking licenses are coming up — it's a massive opportunity, but it requires a completely different product."

At Finacle, Reh and his team is exploring the use of the BlockChain database — the underlying technology platform behind virtual currency BitCoin.

Ever since he joined Infosys last year and has been given the responsibility of a complete make-over to the product business by company CEO Vishal Sikka, Reh worked on the existing process at Finacle and helped Infosys win key deals through EdgeVerve. In the process, he has also hired key executives to strengthen EdgeVerve, including former SAP colleague Anirban Dey.

Reh, also said that Infosys was moving towards a different payment model for its cloud product offerings, including options such as "pay-per-use" for customers.

"The expectations of the market for a cloud product are completely different," said Reh, who spent nearly 15 years at SAP. "Ideally, you just want to go to the cloud, you Google, and whatever advertisement comes up normally is the one you click. And then it's all about how seamless, how easy is it to register, getting a trial account, getting my payments in and then I convert my trial over 30 days into a production environment — it's something we're building into our products to be ready for the next generation,” he further added.

Reh, a former colleague of Sikka at SAP, also said that Infosys was aggressively looking to market Finacle in markets such as the US, where large banks like JP Morgan and Citigroup spend heavily on deploying banking technology systems and upgrading existing ones.

"The US is the market with the highest spend. We will continue investing in India which is an important market for us, but if we want to grow, we can grow outside of India as well. There are big opportunities out there, especially in the US. And the market is opening up, which is a good thing — they have legacy systems which are 20-25 years old. And that's where we're getting in," said Reh.

On August 1, Infosys started integrating its Finacle unit with EdgeVerve to create one combined entity. Reh said the company was working on taking combined, bundled solutions to clients. He, however, did not rule out the possibility of launching more new products under the EdgeVerve umbrella, but said that the unit's biggest priority was to strengthen its existing line of products.

As per the research firm NelsonHall, Finacle currently is generating about $300 million annual revenue.