Bangalore: India’s No. 2 software services exporter Infosys Technologies Ltd is seeing a slowdown in getting new outsourcing contracts but has had no large-scale cancellations, its finance head said on Thursday.
“People are very selective in their spending,” chief financial officer V. Balakrishnan said in an interview. Companies are trying to do what is critical for them and putting off other work.
Nasdaq-listed Infosys, which gets most of its revenue from the US, is looking for acquisitions in Germany, France and Japan to boost growth that has slowed sharply due to the global economic turmoil.
“New project momentum has come down,” Balakrishnan said, adding the company had not seen “large-scale” cancellations despite the tough business environment.
Balakrishnan said a weaker rupee, which has fallen about 5.5% this year after dropping 19.1% in 2008, will give some buffer to the company’s profit margin in the current financial year that ends on 31 March.
Shares in Infosys, whose market value has fallen about 20% to Rs68,000 crore, closed 1.26% down at Rs1,182.80 on the Bombay Stock Exchange.