ET Bureau MUMBAI: Infosys' acquisition of Lodestone will work against it in the near term as Eurozone concerns amplify into 2013, althought in the longer term it may help Infosys gain a bigger foothold, said Ray Wang, CEO and principal analyst of the US-based Constellation Research.
The research firm estimates Infosys' revenue from enterprise software, SAP, will be $ 1 billion post merger.
Lodestone brings 850 employees which 750 are front line delivery personnel. Lodestone’s 200 clients span industries such as life sciences, consumer goods, automotive, financial services, banking and industrial equipment. across a profitable and strategic SAP customer base.
"While some may say this acquisition, which has taken some time to complete, is a late response to the July 2009 HCL – Axon acquisition, Constellation believes this is part of a larger but more conservative approach to shore up Infosys’ EMEA strategy," Mr Wang said in a blog post.
He said the Lodestone's culture and trademark IDEA methodology, representing insight, design, execute, and achieve, would help to transform Infosys.
"This approach aligns with Six Sigma standards and SAP ASAP to improve the quality of implementation outcomes. Infosys can gain from learning the IDEA approach in achieving business transformation across the project life cycle," he added.
The research firm estimates Infosys' revenue from enterprise software, SAP, will be $ 1 billion post merger.
Infosys announced it would acquire the Zurich-based Lodestone for $ 350 million on Tuesday in a deal that is expected to boost its presence in the Europe- Middle East-Africa (EMEA) region, in addition to shoring up SAP revenues.
Lodestone brings 850 employees which 750 are front line delivery personnel. Lodestone’s 200 clients span industries such as life sciences, consumer goods, automotive, financial services, banking and industrial equipment. across a profitable and strategic SAP customer base.
"While some may say this acquisition, which has taken some time to complete, is a late response to the July 2009 HCL – Axon acquisition, Constellation believes this is part of a larger but more conservative approach to shore up Infosys’ EMEA strategy," Mr Wang said in a blog post.
He said the Lodestone's culture and trademark IDEA methodology, representing insight, design, execute, and achieve, would help to transform Infosys.
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"This approach aligns with Six Sigma standards and SAP ASAP to improve the quality of implementation outcomes. Infosys can gain from learning the IDEA approach in achieving business transformation across the project life cycle," he added.
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