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Infosys Selected by Allison Transmission to Offer IT Services


Infosys Limited INFY recently announced that Allison Transmission Holdings, Inc. ALSN has selected the company to provide information technology (IT) infrastructure management services. The world’s biggest manufacturing company of fully automatic transmissions for medium- and heavy-duty commercial vehicles, Allison Transmission, will leverage Infosys’ proprietary artificial intelligence platform, Nia, which would enable the former to meet increasing global technology requirements.

Notably, Nia will assist the company to install a new software command center for Allison Transmission. This will lead to superior management of technology processes and physical assets, thus enabling Allison Transmission to achieve agility and efficiency.

Existing Business Scenario

Over the past few quarters, Infosys had collaborated with many biggies for fortifying its portfolio and market share. In fact, Nia, the company’s integrated AI platform, is helping to accelerate the pace of technology adoption. Currently, Nia has over more than 200 engagements across 100 clients.

Also, as of now, cyber security is proving to be one of the company’s prominent profit churners. Further, robust performance by the data analytics, testing and enterprise system segments signals at the bright prospects ahead.

Meanwhile, the company has been witnessing robust momentum in software and services business under the “New” initiative. Also, the company continues to renew traditional services and rolled out others in areas such as Cloud Ecosystem, Big Data and Analytics, which in turn is boosting its top-line performance.

This apart, the company has been strengthening core competencies by pursuing strategic collaborations and acquisitions. Notably, the Zacks Rank #3 (Hold) stock has rallied 14.9% in the past three months, outperforming the industry’s gain of 8.4%.

Despite these positives, rapid proliferation of customizable internet-based software has been hampering Infosys’ traditional outsourcing business. Most clients now prefer to seek service delivery through digital technology, thus adding to the company’s woes. Moreover, management believes that economic conditions in many of its markets remain quite challenging that might weigh on the company’s profitability, going ahead.

Key Picks

Some better-ranked stocks from the same space are Badger Meter, Inc. BMI and Adobe Systems Inc. ADBE. While Badger Meter sports a Zacks Rank #1 (Strong Buy), Adobe Systems carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Badger Meter has surpassed estimates thrice in the trailing four quarters, with an average positive earnings surprise of 1%.

Adobe Systems has outpaced estimates in the preceding four quarters, with an average earnings surprise of 9%.

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