IT services firm Infosys, has set aside $100 mn to invest in products, platforms and solutions ideas, the company said in a statement today.
The company which announced its fourth quarter results today said that the innovation fund will invest within the company as well as ideas that come from outside.
“Infosys employs many innovative people and some of these ideas can not be expanded in our premises. There are also some areas which we don’t work so if an idea comes it makes sense that pick that idea and invest some money in it and spin it off,” Infosys CEO S D Shibulal told reporters at a press conference in Bangalore.
The products, platforms and solutions business contributes to about 6 % of the companies revenues.
“There are always options in technology wherein you can invest money in technology developed by an external person. We will invest in these ideas which can be capitalised or rolled back into the Infosys,” Shibulal said.
Infosys has had two well known spin outs in the past. Both value added services company OnMobile and Boston based Yantra Corp which was sold to Sterling Commerce for $170 mn in 2004 were Infosys spin offs.
The fund is part of the Infosys 3.0 strategy.
Infosys is also looking to invest some parts of its CSR budget into startup incubators. In an earlier interaction with NextBigWhat, Infosys co-Chairman, Kris Gopalakrishnan said that the company will invest a portion of its CSR budget into technology business incubators.
Union Finance Minister, P Chidambaram, while presenting the 2013 budget had said that spending on technology incubators can now be counted under corporate social responsibility expense. Also, the new companies bill mandates corporates to spend 2% of their net profit on corporate social responsibility activities.
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