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New Delhi: Infosys Technologies Ltd, India's second-largest computer-services company, said orders from its biggest clients may increase next year, betting the global economic slowdown will force companies to turn to cheaper labour.
A survey of the top 100 clients has shown that several customers may outsource more services in 2009, Kris Gopalakrishnan, chief executive officer of the Bangalore-based company, said in an interview in New Delhi yesterday.
Worry
Infosys, and larger rival Tata Consultancy Services Ltd, face concern whether they can sustain earnings growth as the economic slowdown in the US forces customers to cut technology spending. The Indian provider made about 60 per cent of its second-quarter revenue in the US.
"Even if the spending rates aren't increasing, Infosys always garners a greater share of the offshoring," Harit Shah, a Mumbai-based analyst at Angel Broking Ltd. said. Shah has an investment rating of "buy" on the stock.
Infosys rose 1.6 per cent to Rs1,232.40 at the close of trading in Mumbai. The stock has dropped 30 per cent this year.
Gopalakrishnan said the company is sticking with its October forecast. Earnings in the year ending March 31 will probably be $2.24 (Dh8.24) a share, missing the low end of the company's July forecast of $2.32, Infosys said on October 10.
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