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Infosys (INFY), The Economist Tie Up to Drive Sustainability

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Infosys (INFY - Free Report) recently inked a strategic partnership with The Economist Group to develop a new business-to-business (B2B) model to facilitate and accelerate sustainability solutions.

Per the multi-year contract, the India-based IT services provider will be combining its artificial intelligence (AI)-powered digital services capabilities with the media giant’s expertise in policy research, insights and event organization to devise world-transforming solutions. The announcement and launch of the contract’s first phase will occur in October 2021.

Both the companies are committed to designing sustainable business practices, which intend to address some of the most pressing sustainability issues of the planet. Together, they plan to develop a B2B model to unlock long-term thinking of businesses and other institutions. It is worth mentioning that the model will be centered on societal welfare, thereby creating necessary changes to achieve the Agenda 2030 Sustainable Development Goals.

Under the contract, Infosys will be advancing discourses to world leaders and big businesses on sustainability, in an effort to spread environmental and social awareness. The partnership also intends to take necessary actions for the preservation of the planet.

Lately, Infosys has been gaining from large deal wins and fast-growing digital services. It reported a revenue of $3.78 billion in its first-quarter fiscal 2022 results, up 21.2% primarily on account of large deal wins.

During first quarter, the next-generation digital and consulting service major signed multiple large deals worth $2.6 billion. The digital revenues accounted for over 50% of its total revenues.

With the on-going COVID-19 pandemic accelerating the digital transformation process, the latest Mordor Intelligence report states that the global digital transformation market is expected to reach approximately $274 trillion by 2026, witnessing a CAGR of 18.5% during the forecast period (2021-2026).

Infosys has been reinforcing its digital-transformation capabilities for expanding and solidifying its position in the highly competitive environment. The company is enabling its clients across more than 45 countries to create and execute strategies for their digital transformation.

Such efforts in the digital-transformation business will help the company to compete with its peers like Accenture (ACN - Free Report) and Cognizant (CTSH - Free Report) .

Zacks Rank & Stock to Consider

Infosys currently carries a Zacks Rank #3 (Hold).

A better-ranked stock in the broader technology sector is Advanced Micro Devices (AMD - Free Report) sporting a Zacks Rank #1 (Strong Buy). Its long-term earnings growth rate is pegged at 44.6%. You can see the complete list of today’s Zacks #1 Rank stocks here.


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