BUSINESS

Global outsourcing deals rising again, says Infosy

Source:PTI
March 10, 2010 17:12 IST

Indian infotech major Infosys Technologies has witnessed an increase in outsourcing deals as all major markets are back on the recovery track, a top company official said.

"What has changed in the last two quarters is that the markets have improved and deals are coming back. We see more deal-flows," Infosys' CEO and managing director, S Gopalakrishnan, told reporters on the sidelines of a CII meet in Mumbai on Wednesday.

As the deal pipeline is improving, the IT major is looking at diversifying its business worldwide

"The recovery is led by the United States and other emerging markets such as India and China. The US contributes 60 per cent of the total business. Clearly this is having more impact on the Indian IT services. Proactively we are investing more on diversifying our business," he said.

Currently, the company's revenue distribution is 60 per cent from North America, 25 per cent from Europe and the balance from other parts of the world.

"In 5-years from now, we see the revenue distribution at 40 per cent from North America, 40 per cent from Europe and 20 per cent from rest of the world," Gopalkrishnan said.

Pricing would remain stable, he said.

On the increase in minimum alternate tax (MAT) announced in the Budget, Gopalakrishnan said that his company would not be impacted by it.

When asked if volatility in currency movement would affect business, he said any one per cent appreciation or depreciation in currency would affect margins by 0.40 per cent

Image: Infosys CEO S Gopalakrishnan. Photograph: Reuters

Source: PTI
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