Infosys plans to cut US dependence to 40 pc

Most Commented

Unified Communication for your Biz

Improve your contact center performance. See how you can make a difference.

Watch Now

Reach the ICT Community

Engage and build your ICT audience with CIOL online advertising.

Know more

Infosys plans to cut US dependence to 40 pc

Plans to boost contribution from other regions including Europe

Sumeet Chatterjee

Monday, July 28, 2008

Email This

Print This

Comments

RSS

BANGALORE, INDIA: Infosys Technologies plans to cut dependence on the US to about 40 per cent from more than 60 per cent now, its chief executive said, as a slowdown in the world's largest economy hits outsourcing deals.

Infosys, which got 63 per cent of its revenue from the US in the June quarter, planned to boost contribution from Europe to 40 per cent from 27 per cent, while other markets would account for the remaining 20 per cent, CEO S. Gopalakrishnan said.

"We will continuously evolve and change," Gopalakrishnan told Reuters in an interview on Friday.

"It's also driven by realization that emerging markets are contributing more to the global GDP growth, that's where the growth is faster."

He declined to set a timeframe for this, saying: "It's not that you need to do it tomorrow, that you have hit a wall."

Earlier this month, Infosys, India's second-largest software services exporter, beat forecasts with a 21 per cent rise in quarterly profit but warned of challenging times ahead as its major western clients battle weakening economies.

Indian outsourcing firms such as Infosys and its bigger rival Tata Consultancy Services are rapidly expanding to Europe, Asia, the Middle East and Latin America to cut their dependence on the US.

Gopalakrishnan said Nasdaq-listed Infosys was also focusing on markets such as Japan, India, Australia, China, the Middle East, Canada and Latin America due to growing technology spending in these markets.

"These are new growth engines for us. We are investing in those markets and adding sales capacities," he said. "Some momentum is being built and if it's sustained over time I think this will have a positive impact on the company."

Despite mounting turmoil in the global financial industry, Infosys is not seeing downward pressure on prices that it charges its clients, but Gopalakrishnan said it doesn't expect an increase in billing rates either.

Infosys, which develops applications, designs supply chains and offers back-office services, counts ABN AMRO, Goldman Sachs and Philips Electronics among its more than 560 clients.

Gopalakrishnan, one of the seven founders of Infosys which was set up in 1981, expects the consulting business unit to breakeven in the current financial year to March 2009, as it taps more customers for this high margin service.

In the last financial year which ended in March, the consulting unit reported a loss of $13 million.

"It is a conscious choice for us to continue to invest in it," he said. "It is good business... It is a piece that is required if you want to be a full services company."

Shares in Infosys, which the market values at $21 billion, ended nearly one per cent lower at 1,550.30 rupees in a Mumbai market which fell 3.4 per cent.

Would you like to on this article?

Be first to comment on this article

Name
Email
Your reply

Arrested NASA scientist worked on Chandrayaan-1

China wooing Indian IT companies

Polaris eyes emerging mkt post LaserSoft takeover

Rs.10,000 computer-phone by 2010-end

Windows 7: Should CIOs migrate?

NComputing to expand business in India

Infosys, Oracle to launch business platform for HR

Accentia eyes more activity in HRCM space

BSNL to go direct to Zain if consortium talks fail

BSNL not to call new bids for GSM order

	Simplify Business Management. ERP solutions by IBM
	Carry your Dream, Convey your Value with ZTE
	Get EMC Efficient.Learn more

	Get expert views on Mobilin V2
	How to make your enterprise productive
	Unified Communication can impact business. Know how

	Making Web3.0 a Reality!
	CIOL Enterprise Next :What's NEXT in IT? :
	Decrease Total System Costs With Cyclone IV FPGAs

	Reach your desired Target Audience and realize high ROI
	Effective ways of Customer Acquisition through Demand Generation
	Reach 2,500 potential Enterprise Customers!