HCL Infosystems, a Noida-based IT infrastructure major, has decided to increase focus on its fast-growing system integration (SI) business, which involves designing solutions and deploying equipment around information and communication technology (ICT).
The two-year-old SI business contributes 20% to HCL Infosystems’ revenues and is expected to grow by 25%, a May report by equity research firm CLSA said.
The new focus is clear in the new contracts that the company won from the Punjab government and from Africa for e-governance projects. About 53 countries in Africa will be connected under the Rs 80-crore African project.
The CLSA report described the order flow of e-governance and insurance projects as ‘good’.
HCL Infosystems’ Nokia mobile handsets distribution business is doing well. George Paul, executive vice president of HCL Infosystems, told DNA Money, “We are distributing the handsets through an equal partnership with Nokia. The revenue from this business segment has remained flat due to a surge in demand for handsets.”
However, CLSA analysts Bhavtosh Vajpayee and Nimish Joshi, in their report, expect ‘conservative numbers for Nokia growth in the next two years’. They observe that growth will depend ‘heavily on replacement demand’ rather than on the demand for new handsets.
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