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Infosys lands deal to manage Microsoft's internal IT services

Microsoft has outsourced its internal IT services---help desk, desk-side services, infrastructure and application support---to Indian outsourcing firm Infosys.
Written by Larry Dignan, Contributor on

Microsoft has outsourced its internal IT services---help desk, desk-side services, infrastructure and application support---to Indian outsourcing firm Infosys.

For Infosys, managing Microsoft's internal IT gives it a high-profile customer and insight to using the latest technologies from the software giant. Infosys will manage IT services for Microsoft employees worldwide. Microsoft has noted that Infosys is benefiting from a consolidation of services that were already outsourced to HP and others.

Also see: Microsoft downplays Infosys IT outsourcing deal

Specifically, Infosys is tasked with streamlining processes, simplifying support and service and cutting costs by using Microsoft's own software, say Windows 7. Infosys will support Microsoft's applications, devices and databases in 450 locations. Infosys has partnered with Unisys to deliver on-premise support and service desk capabilities.

Infosys said in a statement that it can take its Microsoft learnings and apply them to other customers.

In addition, Infosys reported its fourth quarter an annual earnings. For the quarter ending March 31, Infosys reported revenue of $1.29 billion, up 15.6 percent from a year ago. Earnings were $349 million. The company added 47 customers in the fourth quarter and added 3,914 net employees.

For fiscal 2010, Infosys reported revenue of $4.8 billion, up from $4.66 billion a year ago. Net income was $1.31 billion for fiscal 2010, up from $1.28 billion the previous year.

The outlook for Infosys was also strong. For the first quarter ending June 30, Infosys projected revenue of $1.33 billion and $1.34 billion, up 18.5 percent to 19.4 percent. Earnings per share will be 55 cents a share to 56 cents a share. For fiscal 2011, Infosys is projecting revenue of $5.57 billion and $5.67 billion, up 16 percent to 18 percent year over year. Earnings per share will be between $2.40 and $2.50.

Here's a look at the Infosys revenue breakdown by geography and service:

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