Infosys not hit by Sainsbury plans

By : |August 31, 2000 0

BANGALORE: Infosys Technologies Ltd. will not be hurt by a client’s plans to outsource its information technology needs, a company source said on Thursday. “It is not going to make any difference to our revenues even if they call off our deal,” he said, referring to a $45-million contract to provide software services over a five-year period for British supermarket J Sainsbury Plc.

The source, who did not want to be identified, said the contract has not been called off. The deal accounts for less than two per cent of Infosys’ annual revenues, he said. The British firm said last week it is planning to improve efficiency by outsourcing its information technology functions to Andersen Consulting, but did not say what this would mean for its existing contract with Infosys.

Infosys shares closed seven per cent higher at Rs 8,373.15 on Thursday, while the benchmark Sensex ended up 1.48 per cent at 4,477.31 points. “It doesn’t matter even if Infosys loses the Sainsbury deal,” Yeshwant Kini, analyst at SG Securities, told Reuters. “Going forward, it was not going to be a major share of Infosys’s business…probably two percent or much less than that,” he said. Nasdaq-listed Infosys posted revenues of $203.44 million in the year ended March 31, according to U.S. accounting standards.

(C) Reuters Limited 2000.

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