Infosys buys automation company for $257m

Infosys will buy US-based provider of automation technology Panaya for US$200 million (A$257 million) as India's second-biggest IT outsourcing company bets on new technology to boost growth.

Under CEO Vishal Sikka, Infosys has been making big bets on automation and other new technology like artificial intelligence and cloud-based services as the company tries to regain some lost ground from rivals such as Tata Consultancy Services.

Panaya allows customers to automate testing and upgrading of enterprise software.

The cloud-based service reduces the amount of time, risk and cost involved in delivering changes to enterprise software by identifying how existing environments will be impacted, what needs to be tested, and managing the testing plans.

"The acquisition of Panaya is a key step in renewing and differentiating our service lines," Sikka said in a statement.

"This will help amplify the potential of our people, freeing us from the drudgery of many repetitive tasks, so we may focus more on the important, strategic challenges faced by our clients."

The acquisition is all cash and is expected to be complete by March 31.