Advertisement

HindustanTimes Sat,19 Apr 2014

'There is a strategic shift at Infosys'

Vivek Sinha, Hindustan Times   April 12, 2013
First Published: 22:57 IST(12/4/2013) | Last Updated: 23:00 IST(12/4/2013)

Hit by an uncertain economic environment in the US and Europe, Infosys’ revenue projection for 2013-14 announced on Friday was below the industry average. CEO SD Shibulal speaks to HT about the company’s roadmap ahead. Excerpts:

Advertisement

Your growth has largely been flat during the fourth quarter. Is the uncertain economic environment in the West hitting Infosys hard?
That is not the correct way to put things into perspective. If you look at our growth in the fourth quarter, the onsite volume has gone up by 3.7% and offshore volume has increased by 0.5%, which is a reflection of new deals being executed. But client decisions are being hampered due to the uncertain economic environment. So the ramp ups may have started onsite but offshore ramp ups are still not visible.

But over the last several quarters peer firms have done well compared to Infosys? Is this not a matter of concern for the company?
Different companies have different revenue profiles. Our dependence on discretionary spend is higher than others. For instance, consulting services that is reliant on discretionary spending still garners close to 33% revenues for us, which is higher than the industry average of 17-18%.

Also, we operate in a very volatile environment and are very much dependant on the finance and services industry that still reeling under cost pressures.

Is that the reason for your revenue growth projection of 6-10% vis-a-vis average industry growth of 12-14%?
Our guidance is a statement of facts and we have seen volatility over the last eight quarters. This volatility is likely to continue, so we have to look where we are and make a reflection of facts in our guidance. We have given a broad-range guidance due to the volatility.

So, any strategic shift at Infosys?
Yes, definitely there is a strategic shift at the company. In the long-term we maintain to grow above the industry average and in the short-term we are facing some volatility in the environment.

Do you expect Europe as a region and products as a service to gain weight in your revenue basket?
We expect revenues from Europe to go up and in the next few years give us close to 35-40% revenues. Product and platforms as a service will grow very gradually unless off course, we increase that stream by an acquisition.

Advertisement
more from Business

700 trainees opt for exit plan at Nokia’s Chennai plant

Finnish handset maker Nokia, struggling to shepherd its Chennai plant into its agreement to be bought by US software giant Microsoft amid tax disputes in India, has got some success with 736 of its trainees accepting the voluntary separation scheme.
markets
Advertisement
Most Popular
Advertisement
Copyright © 2014 HT Media Limited. All Rights Reserved