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Prices stable, but cannot be demanded: Infosys CEO

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CIOL Bureau
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MUMBAI: Pricing of software services is beginning to stabilize but service providers are not yet in a position to dictate rates, said the head of India's largest listed exporter of software services, Infosys Technologies Ltd.



"We feel that the prices are beginning to stabilize," Infosys Chief Executive Officer, Nandan Nilekani told Reuters in an email response to a questionnaire at the weekend.



"While this does not mean that we have reached a situation where companies are able to dictate prices, they have, however, become stable," he said.



He added there was not much change in the level of global technology spending in the past two months.



Infosys is re-organizing its operations in North America to focus on the retail, aerospace and automobile sectors to complement its traditional strengths in financial services.



Indian companies will become more competitive as prices stabilize and volumes grow, Nilekani said.



Indian software services firms have benefited from the move by many global companies to outsource services to offshore locations like India.



Nilekani declined to comment on the volume growth Infosys had seen in the current quarter. The firm will announce third-quarter results in January.



Infosys, which ranks behind the privately held, Tata Consultancy Services, has some 20,000 employees. It has added 4,770 employees in the first half of the current financial year that started in April and expects to hire another 3,000 in the second half.



Nilekani said the firm was currently awaiting government permission to set up a wholly-owned subsidiary in China. It has an office and software development center already functioning in that country, he said.



Infosys hopes to offer its services to Chinese firms and multinationals operating in China through this subsidiary.



Shares of Infosys ended Monday little changed at 4,909.35 rupees at the Bombay Stock Exchange, whose benchmark index closed flat.



(Additional reporting by Sally Yip in Singapore)



Reuters

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