Infosys Says Clients May Spend Less
Originally posted on Wall Street Journal
Infosys Technologies Ltd. expects its clients to spend less on technology this year as the financial meltdown squeezes them, the software exporter’s chief operating officer said Tuesday.
“There is a common feeling that the budgets will be down this year, possibly in a range of about 8%, plus or minus, on an average” from a year earlier, S. D. Shibulal told reporters on the sidelines of a press meeting at its headquarters in Bangalore.
Infosys, the second-largest Indian software exporter by revenue, and its rivals are hurt by the financial meltdown in their main markets — the U.S. and Europe.
Earlier this month, software industry group NASSCOM cut its revenue growth forecast for the sector to 16%-17% from its earlier view of 20% in the fiscal year ending March 31.
Infosys expects the next fiscal year beginning April 1 to be tougher, given the adverse economic environment in which its clients operate, Mr. Shibulal said.
“There is no clarity on when the global economy will rebound. From the time it does, it’ll take another two quarters for IT demand to pick up,” he said.