'We value people more'
You have set up a state-of-the-art residential facility within the campus in Bangalore. Are you planning to give five star properties a run for their money?
No, certainly not. It is just a step to ensure that our potential clients, employees from abroad as well as board members, do not have to dabble with cluttered hotel space when they travel to Bangalore. The problem of rooms had become so acute that recently we had to put up a potential client in Chennai and they would fly down everyday to the campus for negotiations. It couldn’t get worse than that. So having a residential facility within the campus had become more of a business necessity than a luxury.
With the success of the largest foreign offering by an Indian company at Nasdaq, there is a fair chance of Infy entering the Nasdaq 100. By when do you see that happening?
We currently have a market capitalisation of $2.5 billion in the US and are within close range of making the cut, with $3.2 billion being the lowest market cap for the Nasdaq 100 list. When we will make it to the Nasdaq 100 will depend on the market.
What was the logic behind inviting Japanese investors to participate in the ADS this time. Is Japan also emerging as a serious market for Infosys?Japan is the third largest capital market in the world. It is also the second largest IT services market in the world. Our main reason to do a Public Offer Without Listing (POWL) in Japan is to increase our brand equity and profile in that market. This would help us grow aggressively in that market.
The guidance for next quarter has been a cautious one. What do you see hampering growth?
We had talked about certain client -specific issues in our last earnings call including the fact that large customers were distracted by the need to finish Sarbanes-Oxley compliance projects. Making matters worse, two other major customers were reorganising during the quarter, and would not be in a position to close deals. We believe these issues would impact the short-term growth and hence the muted guidance for the first quarter. However, we are comfortable with a 28 per cent to 30 per cent growth in revenues in dollar terms for the full year.
How is the consultancy business taking off?
Our consulting business is doing very well. Over the last one year, the five-member team has created a larger team of 100 and this would go up to 500 by March 2007. During the year, Infosys Consulting serviced 25 clients and generated revenues of Rs 21.11 crore.
How do you see the onsite-offshore ratio for revenues change in the next couple of years and why?
Our current onsite-offshore ratio is 48:52. As the industry is steadily maturing, we don’t see it changing significantly in the next couple of years.
Till now the growth of a software company was primarily judged by the employee ramp up. But industry now feels that this is more of a misnomer and software majors don’t need steep recruitments to grow beyond where they are.
Do you subscribe to the view?
We feel that more than the numbers it will be the people competencies that will enable us to provide greater value added services to our clients. Therefore sustainable growth depends on our ability to nurture and grow the intellectual capital within the company. Today, we have several well thought out recruitment and competency development programs under way, to address our growing needs and developing domain specific skills.
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