Infosys is experiencing notable growth in Europe, with the second quarter ending in September showing a year-on-year revenue increase of approximately 5% in constant currency, in contrast to more modest growth in the United States.
Today, Infosys, the second-largest IT services company in India, unveiled a proximity center in Sofia, Bulgaria, as a crucial component of its European expansion strategy, aimed at capitalizing on global prospects within next-generation digital technologies.
This newly established center, located in Sofia, will empower the Bengaluru-based software export firm to engage local talent and facilitate the recruitment, development, and enhancement of 500 new employees over the forthcoming four years.
In the coming four years, these fresh recruits will be dedicated to pursuing worldwide prospects in next-generation digital technologies. This encompassing domain includes Infosys Cobalt Cloud Solutions, Infosys Topaz AI & Automation, Data and Insights, IoT, 5G, and software engineering, as disclosed in an official statement by Infosys.
Infosys is experiencing significant growth in Europe, as evidenced by the second quarter ending in September, which saw a robust 5% year-on-year revenue increase in constant currency, in contrast to a more subdued growth trajectory observed in the United States.
In the preceding month, Infosys unveiled its financial results, revealing a 2.3% quarter-on-quarter rise in total revenue, along with a 2.5% year-on-year increase in constant currency, amounting to Rs 38,994 crore. This performance corresponded to a 3.17% growth in net profit, which reached Rs 6,212 crore.
In a media call held last month after the earnings report, Salil Parekh, the Chief Executive Officer and Managing Director commented on the company’s performance, stating, “We have observed a consistent trend over the past few quarters, with stronger growth in Europe compared to what we have seen in the US. This phenomenon is partly attributable to industry-specific dynamics. We’ve also noticed more robust growth in certain European countries.” Parekh’s remarks were made in response to inquiries from ET.
Salil Parekh noted that the growth in Europe has primarily stemmed from sectors such as manufacturing, life sciences, and certain segments within the retail industry.
Bulgaria has established itself as an appealing hub for IT development, thanks to its well-developed IT infrastructure, a skilled local workforce, and a high level of expertise in information technology.
The new Infosys center will be strategically situated in the capital city of the country, serving as a focal point for orchestrating and advancing digital transformation initiatives for companies across various industries, including financial services and retail, not only in Bulgaria but also across Europe. In addition to forming partnerships with various organizations, the center will function as a dynamic hub for conceptualizing, nurturing, developing, and expanding pioneering solutions based on emerging technologies.
The statement goes on to mention that this center while catering to both global and European clientele, will play a pivotal role in assisting customers to expedite their digital transformations driven by AI and cloud technologies. Additionally, it will enhance Infosys’ established partnerships with clients in Europe, with a special focus on industries like manufacturing, retail, and financial services. The center will also serve as a platform for the rapid expansion of teams specializing in digital and analytical capabilities, as well as expertise in SAP and cloud technologies.
Milena Stoycheva, the Minister of Innovation and Growth for the Bulgarian government expressed her thoughts on the inauguration of the new center in Sofia. She remarked, She commented, “The establishment of this new center in Sofia highlights Infosys’ commitment to fostering indigenous talent within our nation.” With a pledge to employ a workforce of 500 professionals within the next four years, we eagerly anticipate witnessing the company’s positive impact on our local economy, as well as the new prospects and skills it will bring to those working in the technology sector.”
Dinesh Rao, who serves as the Executive Vice President and Co-Head of Delivery at Infosys, emphasized the company’s commitment to expanding its presence in Europe to enhance its proximity to clients and leverage its capabilities, skills, and expertise. He further mentioned, “Bulgaria is celebrated for its outstanding IT talent, and we are enthusiastic about assembling a standout workforce capable of fulfilling the requirements for cutting-edge skills and solutions. Our primary focus is on driving forward our clients’ AI and cloud-first transformation journey.”
