Infosys stunned all when it announced that its dollar revenues would grow by just 8 to 10%, much below the industry average. SD Shibulal, CEO and managing director of Infosys says global macro-economic environment continues to be uncertain which is the “new normal”. Excerpts:
What adjective would you use to describe the macro-economic scenario in the West?
The first word that comes to my mind is “volatile”, which has led to an environment where there is a lack of confidence in the global economic situation. The situation is more challenging, more volatile and a “new normal”.
How much of this is due to lack of political will?
There can always be challenges and there can always be crises, but the big question is whether there is a political will to take quick action. And definitely our clients are not seeing that kind of will in the environment.
Will you water down your revenue outlook further?
We have not changed principles. The first principle is that we have given the guidance. To stand up in the beginning of the year and say that we will grow by 8 to 10% in these environments is definitely a bold step. I cannot predict the future and guidance remains a statement of facts based on current scenario.
What does all this mean for your employees?
At this point in time we are not increasing the wages for this year. We will re-look at this on a quarterly basis. When situation improves we will look at the compensation.