Chennai: Indian computer services firms are finding the going tough in the current fiscal year due to an economic downturn in the US and currency fluctuations. Securities firm CLSA Asia Pacific Markets has warned that the country’s second largest software exporter Infosys Technologies Ltd may miss its projections in the second quarter that ends in September due to these reasons. B. Ramalinga Raju, chairman of Satyam Computer Services Ltd, a smaller rival of Infosys, said in an interview that there are no surprises and the firm would meet its revenue target for the year to March 2009. Edited excerpts:
How is the demand for IT (information technology) services? Are companies talking about slowdown spreading further? What are your customers saying?
We have given guidance for fairly positive growth, in spite of the fact that the base is growing quite significantly—for Satyam and the industry as such. Some of the challenges we have faced, particularly in the US, have arisen mainly out of the financial services sector. We are hoping this would not extend to other sectors, and so far, we are doing quite well against the guidance.
Are customers taking longer to decide?
When we deal with five-six hundred customers, it is difficult to bracket them in one kind of approach. But generally speaking, there are two forces at play. In some instances, there may be a slowdown in decision-making. But in others, it is all the more reason why they have to do something different.
Upbeat stance: A file picture of Satyam Computer Services chairman B. Ramalinga Raju.
If the slowdown is not very deep, one would expect these things to balance out. As far as this year is concerned, we believe we are on fairly firm footing.
There has also been talk of the pain shifting to Europe and the UK in the next few months?
If that were to be the case, it is certainly not reflected in our interactions with our customers. It is (also) not reflected in our guidance in the current year.
Would you stick to the guidance of 24-26% growth in dollar revenue and a rise of 32-34% in rupee revenue?
We are confident of meeting the guidance.
What about currency fluctuations?
We do not unduly worry about things not in our control. Therefore, we are trying to do our best to increase efficiencies in our operations, both at the level of customer-facing functions as well as delivery. We had to convert some of these challenges into opportunities. Here is an opportunity for us to improve efficiencies within the organization so that, even in testing times, we are able to do fairly well.
Is it the reason why we are seeing Satyam laying off people?