BANGALORE, INDIA: Indian IT giant Infosys Technologies Ltd, plans to hire 30,000 people this financial year. Infosys earlier forecast revenue growth of 16-18 percent for 2010/11, slightly higher than market estimates, on robust outsourcing demand.
This was said by the company's chief operating officer S.D. Shibulal after announcing the financial results of the company here today.
"During FY11, we plan to recruit 30,000 people. Last year, we started with 18,000 and ended up with 27,000," he told reporters here.
He also said the wage hike announced this year is one of the best it has ever done.
“Now, we have announced on wage hike - probably one of the best we have ever done - 13 to 17 percent offshore and 2 to 3 per cent on site.
Balakrishnan V, Infosys Group CFO, explained, "There are two reasons for the wage hike - firstly because the competition is action irrational and perhaps this move will make them work in a rational manner. Secondly, supply is a key competitor. We expect this to work towards our advantage.”
He remarked that the company can afford this kind of hikes and recruitmnets, since it would largely come from the bottom of the pyramid.
India's No. 2 software services exporter also expects 2010/11 profit margins to drop 150 basis points mainly due to a firmer rupee.
Pricing of contracts, which had fallen 1.5 per cent in the March quarter, is seen to be stable in the current financial year which started on April 1, S.D. Shibulal told reporters.
Infosys earlier forecast revenue growth of 16-18 percent for 2010/11, slightly higher than market estimates, on robust outsourcing demand.
Following are comments from Shibulal after the results:
On demand environment:
"The global economic environment continues to be challenging, but at the same time, our customers are starting to take decisions. Majority of the customers have closed their budget. They believe that they will invest in the short term, cautiously though.
"Communication service provider continues to lag behind. I think that is the only vertical where we are seeing some weakness."
On pricing:
"Pricing will remain stable. This year our revenue productivity has actually come down by 4 percent and for the quarter by 1.5 percent. Most of the pricing renegotiations we believe are behind us. There are some sporadic pricing renegotiations.
"For the year, we have taken flat revenue productivity. That means we don't anticipate any changes in the pricing."
(With inputs from CIOL Bureau)