As the macro-economic environment in the US and Europe remain grim, “cautious optimism” is the mantra for IT bellwether Infosys. SD Shibulal, CEO and MD, Infosys, told HT that though there is a delay in business decisions of clients, short-term investments are still happening.
Given the prevailing situation in the West, how do you see the larger picture?
We have to remain cautious because the economic environment continues to be challenging for lot of our clients. In fact, it is turbulent in various parts of the world. But our focus has been, and still is, to make sure that we remain more relevant to our clients and ensure that we deliver higher business value.
How has the ongoing economic turmoil affected your clients?
There has been delays in decision-making. We also see delays in long-term investments, wherein there is more rigorous scrutiny.
However, short-term investment are happening. So after taking things into perspective, we remain cautiously optimistic.
Which are the business verticals that have been hit most?
The financial sector has seen the biggest impact, which incidentally is our biggest revenues grosser as well. Globally also it has been hit the most. Manufacturing comes next.
You have been diversifying your revenue base...?
We are constantly investing into new regions such as Continental Europe. We have chosen Germany and France to have country managers. We continue to invest into India, Brazil, West Asia and various other parts of the world. This remains our long-term growth strategy.
Of late there has been a lot of buzz about a big-ticket acquisition by Infosys. Will there be a final announcement soon?
We are continuously looking at engaging with potential candidates but then there is nothing more to announce at this point of time.
We continue to look for potential suitors in the product and platform space, to develop consulting capabilities and for foray into newer countries.