Bangalore: Infosys Technologies Ltd, India’s second largest outsourcer, is seeing less positive sentiment for technology spending among its clients in Europe, its chief executive S. Gopalakrishnan said on Tuesday.
Europe, which contributes about a fifth of the company’s revenue, is recovering slower than the United States from a slowdown, Gopalakrishnan said on the sidelines of an industry meet.
“Client confidence was already lower in Europe than the US. That is why they are spending lower in Europe,” he told reporters. “Europe has been slower in recovery.”
The United States is the company’s largest market, contributing about two-thirds to total revenue.
Gopalakrishnan said he expected the IT budgets of global clients for 2011 would be flat to slightly positive.
European currencies have turned favourable to the company, he said.
Earlier this month, Infosys had warned currency volatility could crimp growth for India’s $60 billion export-focused outsourcing sector, after topping market estimates for September quarter profit and raising its full-year revenue forecast.
Shares in Infosys, whose market value has risen about 16% this year to nearly $39 billion, were trading little changed on the BSE.