According to 'The Ecosystem Imperative,' enterprise modernization is required to
enable ecosystem relationships
NEW
YORK, May 3, 2023 /PRNewswire/
-- Infosys (NYSE: INFY), a global leader in
next-generation digital services and consulting, today unveiled the
findings of the banking and financial services study conducted in
collaboration with HFS Research, a leading global analyst firm. The
study, 'The ecosystem imperative:
How to create new sources of value in BFS enterprises,' reveals that BFS enterprises, torn
between macroeconomic challenges and exciting innovation potential,
identify the creation of ecosystems as the new hope for driving
growth and creating new forms of value.
Key findings of the research:
- Revenue growth (29%) and profitability (26%) are still top
business objectives for firms, joined by a new contender—the
creation of collaborative ecosystems to drive new forms of value
(24%).
- In just two short years, 44% of BFS respondents believe they
will be driving growth through ecosystems. But without an interim
stage of enterprise modernization, these efforts may fail.
- Acquiring and retaining talent, lack of centralized data
governance and legacy tech are the biggest roadblocks to ROI from
innovation investments.
- BFS enterprises are turning to collaborators with much higher
expectations for enabling their paths to new value. The
collaborators of choice for help addressing these issues are
full-service firms (65%) and, increasingly, fintechs (60%).
- Amid challenging macroeconomic circumstances, respondents
indicate that the new measure of a strategic collaborator is the
provision of both cost and transformation. Cost alone is no longer
enough.
Dennis Gada, EVP and Industry
Head – Financial Services, Infosys, said, "The leading
banking and financial services firms are eager to leverage the
power of new technologies and create new value streams through
sustainable banking, real-time payments and digital trust, but
are faced with today's macroeconomic challenges and evolving
customer expectations. As a result, and as our study found, savvy
enterprises are driving opportunities with ecosystem collaborators
to help accelerate their transformation journey and make rapid
progress against their innovation goals."
Elena Christopher, Chief
Research Officer, HFS Research, and report co-author,
said, "Given the challenging macroeconomic circumstances
exacerbated by banks' liquidity crisis, financial services firms
are seeking ways to make a practical impact. Our study shows firms
are keen on creating new value with ecosystem collaborators. To
activate this, banks must address their modernization needs."
The study defines ecosystems as collaboration across multiple
organizations with common objectives to create new sources of
value. This ecosystem imperative is wildly exciting. It is also
wildly unrealistic unless BFS enterprises take measured steps to
address enterprise modernization and decades of tech and process
debt.
The study aligned BFS respondents across an innovation maturity
framework:
- Horizon 1: Functional digital optimization, the current state,
required to survive
- Horizon 2: End-to-end enterprise modernization, the required
state, necessary to thrive
- Horizon 3: New value creation through ecosystems, the future
state, the opportunity to lead
Fifty percent of respondents are currently at Horizon 1, focused
on digital optimization. In two years, this will change direction,
with 44% expecting to achieve Horizon 3, where ecosystem
transformation focuses on leveraging relationships to drive new
forms of value. The path to Horizon 3 must include Horizon 2,
enterprise transformation as one can't get there from here
otherwise. Failure to do so will limit ecosystem collaboration with
others such as fintechs.
This is the first study in a four-part series, in which Infosys
and HFS Research surveyed 450 banking and financial services
leaders across the Global 2000 to examine what's driving the demand
for business innovation and growth at scale, and why these firms
are realizing they need to make rapid progress. The series will
continue with drill-down spotlights on innovation and ecosystems in
payments, commercial banking, and wealth and asset management.
To read the full report, click here.
About Infosys
Infosys is a global leader in next-generation digital services
and consulting. Over 300,000 of our people work to amplify human
potential and create the next opportunity for people, businesses
and communities. With over four decades of experience in managing
the systems and workings of global enterprises, we
expertly steer clients, in more than 50 countries, as they
navigate their digital transformation powered by
the cloud. We enable them with an AI-powered core, empower the
business with agile digital at scale and drive continuous
improvement with always-on learning through the transfer of digital
skills, expertise, and ideas from our innovation ecosystem. We are
deeply committed to being a well-governed, environmentally
sustainable organization where diverse talent thrives in an
inclusive workplace.
Visit www.infosys.com to see how Infosys (NSE, BSE, NYSE: INFY)
can help your enterprise navigate your next.
About HFS Research
HFS is a unique analyst organization that combines deep
visionary expertise with rapid demand-side analysis of the Global
2000. Its outlook for the future is admired across the global
technology and business operations industries. Its analysts are
respected for their no nonsense insights based on demand-side data
and engagements with industry practitioners.
HFS Research introduced the world to terms such as "RPA"
(Robotic Process Automation) in 2012 and more recently, Digital
OneOffice™ and OneEcosystem™. The HFS mission is to provide
visionary insight into the major innovations impacting business
operations such as Automation and Process Intelligence, Blockchain,
the Metaverse and Web3. HFS has deep business practices across all
key industries, IT and business services, sustainability, and
engineering.
Read more about HFS and our initiatives at
www.hfsresearch.com
Safe Harbor
Certain statements in this release concerning our future growth
prospects, financial expectations and plans for navigating the
COVID-19 impact on our employees, clients and stakeholders are
forward-looking statements intended to qualify for the 'safe
harbor' under the Private Securities Litigation Reform Act of 1995,
which involve a number of risks and uncertainties that could cause
actual results to differ materially from those in such
forward-looking statements. The risks and uncertainties relating to
these statements include, but are not limited to, risks and
uncertainties regarding COVID-19 and the effects of government and
other measures seeking to contain its spread, risks related to an
economic downturn or recession in India, the United
States and other countries around the world, changes in
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earnings, fluctuations in foreign exchange rates, our ability to
manage growth, intense competition in IT services including those
factors which may affect our cost advantage, wage increases in
India and the US, our ability to
attract and retain highly skilled professionals, time and cost
overruns on fixed-price, fixed-time frame contracts, client
concentration, restrictions on immigration, industry segment
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reduced demand for technology in our key focus areas, disruptions
in telecommunication networks or system failures, our ability to
successfully complete and integrate potential acquisitions,
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companies in which Infosys has made strategic investments,
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property and general economic conditions affecting our industry and
the outcome of pending litigation and government investigation.
Additional risks that could affect our future operating results are
more fully described in our United States Securities and Exchange
Commission filings including our Annual Report on Form 20-F for the
fiscal year ended March 31, 2022.
These filings are available at www.sec.gov. Infosys may, from
time to time, make additional written and oral forward-looking
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