Infosys (INFY), IMDA Tie Up to Expand Singapore Presence

Infosys INFY recently collaborated with Singapore’s Infocomm Media Development Authority (IMDA) to hire 300 workers from the Southeast Asian country over the next three years.

With this tie-up, Infosys will expand its footprint in Singapore by recruiting professionals from fresh graduates to mature professionals, managers, executives and technicians of both technology and non-technology backgrounds. Infosys Compaz (iCompaz), a joint venture between Infosys and Singapore government’s Temasek Holdings focused on Digital Transformation for enterprises across industry vertical segments and services, will hire the individuals.

The IMDA is a statutory board under the Singapore Ministry of Communications and Information. It provides numerous programs, policies and grants that cater to industries and communities, safeguards the interests of consumers and fosters pro-enterprise regulations. Per the latest agreement, Infosys will hire and train Singaporeans with in-demand skills in cybersecurity, software engineering and cloud engineering under IMDA’s TechSkills Accelerator (TeSA) Company-Led Training (CLT) program.

Infosys Limited Price and Consensus

Infosys Limited price-consensus-chart | Infosys Limited Quote

IMDA’s TeSA CLT program aims to accelerate professional development through an on-the-job training program for fresh to mid-level professionals acquiring competencies for jobs in demand by industry, especially those that support the Digital Economy sector transformation efforts.

Through this collaboration with IMDA, Infosys intends to accelerate Singapore’s digital transformation process by bringing in its digital expertise to develop a highly skilled future workforce. The move highlights the company's commitment to creating employment opportunities at local levels in support of the Singapore Government's ongoing digital upskilling programs.

Infosys has been reinforcing its digital-transformation capabilities to expand and solidify its position in the highly competitive environment. It enables its clients across over 45 countries to create and execute strategies for their digital transformation. Such efforts in the digital-transformation business will aid the company in competing with peers like Accenture and Cognizant.

Recently, in June, the company entered a collaboration with Harvard Business Publishing to empower India’s next generation with critical digital and life skills made available free of cost via Infosys Springboard. This is part of the continued efforts that Infosys has been undertaking to empower 10 million plus people with digital skills by 2025 through its virtual learning platform, Springboard, helping youths become industry-ready for careers of the future.

Nonetheless, spending on such technology products and services is subject to fluctuations, which depend on factors like high market volatility. The rapid proliferation of customizable internet-based software has been hampering Infosys’ traditional outsourcing business. These challenges might weigh on the company’s profitability going ahead.

Zacks Rank & Stocks to Consider

Infosys currently has a Zacks Rank of 4 (Sell). Shares of INFY have plunged 17.5% in the past year.

Some better-ranked stocks from the broader Computer and Technology sector are Axcelis Technologies ACLS, Keysight Technologies KEYS and Synopsys SNPS. While Axcelis flaunts a Zacks Rank #1 (Strong Buy), Keysight and Synopsys each carry a Zacks Rank of 2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Axcelis' second-quarter 2022 earnings has been revised 6 cents northward to $1.00 per share over the past 90 days. For 2022, earnings estimates have moved a penny north to $4.38 per share in the past 30 days.

Axcelis' earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 23.5%. Shares of ACLS have soared 77% in the past year.

The Zacks Consensus Estimate for Keysight's third-quarter fiscal 2022 earnings has been revised upward by a penny to $1.79 per share over the past 30 days. For 2023, earnings estimates have moved 3 cents north to $7.17 per share in the past 30 days.

Keysight’s earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 8%. Shares of KEYS have fallen 4.8% in the past year.

The Zacks Consensus Estimate for Synopsys’ third-quarter fiscal 2022 earnings has been revised 35.1% northward to $2.04 per share over the past 90 days. For 2023, earnings estimates have moved 9.7% up to $8.67 per share in the past 90 days.

Synopsys’ earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 2.7%. Shares of SNPS have increased 20.7% in the past year.

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