Bangalore: The back-office processing arm of India’s No.2 software firm, Infosys Technologies Ltd, expects revenue growth of 18-20% in the next fiscal year, driven by the banking and financial services sector, its chief executive said on Friday.
D. Swaminathan, CEO and MD of Infosys BPO, said he expects operating margins of 20 to 22% in fiscal 2012 that starts in April.
“We continue to stay bullish on the banking and financial services industry. We also believe that there would be reasonable growth in the manufacturing vertical and in some sense in the retail space as well,” Swaminathan said.
The company plans to hire a gross 8,000 staff, he said on the sidelines of a conference, adding he expects attrition to stabilize to 25-30% in the next fiscal.
Infosys BPO, which was set up as a separate unit of Infosys in 2002, offers finance and accounting, human resource and legal services outsourcing.
Swaminathan said the unit’s order pipeline was “reasonable,” and that pricing pressure in low-end services was expected to continue in the near future.
“I would think that the order pipeline is good except that the conversions are taking a little longer than normal essentially because of the fact that everyone is still trying to understand how the economies are going to do,” he said.
In January, parent Infosys posted third-quarter profit that lagged estimates sparking concerns about the outlook for India’s showpiece outsourcing sector.
Shares of the company were up 1.4% at Rs3,067.90 by 2:25 pm, while the BSE benchmark Sensex was up 0.5%.