Infosys braces for more US, Europe curbs

Infosys Ltd. | IT - Software | IT & ITES | BSE: 500209 | NSE: INFY

21 Sep 2010 Evaluate

Infosys is putting together a plan to protect itself from more curbs from the US and Europe by focusing more on technological and business innovation and accelerating the process of spreading its risks evenly across continents.

The IT major has expressed concern about the “worsening US economic variables,” and “lingering concerns in Europe” at a recent analyst meet. It expressed caution about the fiscal 2012 (ended March 2012) growth trajectory, arguing that deteriorating economic data point over the next few months could impact client confidence and, hence, 2011 IT budgets. It said the US–based hiring may need to increase if certain protectionist legislative measures are passed.

On its part, Infosys wants to make the transition from Point A which is 60:25:15 (60 per cent of the business from the US, 25 per cent from Europe and 15 per cent from the rest) to Point B: 40:40:20 (40 per cent: US; 20 per cent each from Europe and the rest). The company is hiring 1,000 people in the US. Infosys business in Australia is growing and there is more focus on increasing business in Japan as well. He said clients engage with Infosys because it has an innovative model based on low cost and high quality.

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