Infosys sees no impact of slowdown in US economy

By Fakir Balaji, IANS

Bangalore : Infosys Technologies Ltd, India’s second largest IT firm, does not see a possible recession in the US economy negatively impacting its revenues, thanks to a series of internal strategies, a top company official said here Friday.

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“There is no visibility of the IT budget being impacted by possible slowdown in the US economy. The environment is positive and growth looks favourable though it is challenging at the macro level,” Infosys CEO and managing director S. Gopalakrishnan told IANS.

Even if some of Infosys’ clients, especially in the US, take a call to prune their tech spending this year, outsourcing of their IT services will continue to sustain growth.

“It is a bit early to assess the scenario, as many firms are yet to finalise their IT budget. We have to wait for a month or so to get a clear picture. Outsourcing will, however, continue to grow by 25-30 percent annually,” Gopalakrishnan asserted.

In spite of a rising rupee and stiff competition from peer players for a share of the same pie, Gopalakrishnan said the outlook for 2008 was positive, as indicated by some of the drivers.

“Enterprises are realising the need to reduce energy consumption of their IT infrastructure. Consolidation in servers and virtualisation will lead to greater tech investment for optimal utilisation of resources. Technology evolution, convergence and unified communication will sustain the IT boom,” he said.

The company is expanding its operations in non-US markets to offset the impact of rupee appreciation against the greenback, as part of a strategy to reduce its risks associated with relying heavily on a single market.

He said Infosys has also set up a separate business unit for the Indian market, where IT spending by industry has been on the upswing. The domestic IT services market is estimated to be about $5 billion.