New York: India’s software services firm Infosys Technologies expects a weaker revenue growth in the current financial year amid global economic slowdown, a US media report said.
“Economic uncertainties are weighing on customers’ information technology spending in the US and Europe as the malaise of weakening growth spreads,” Infosys Chief Executive S Gopalakrishnan was quoted as saying by the Wall Street Journal in its online edition.
“That uncertainty is being reflected in (customers’) ability to increase their spending....Even when budgets are released they’re not sure if they’ll get the returns...so they are not able to kick off projects,” Gopalakrishnan said.
Last year, Infosys posted revenue of Rs167 billion, reporting a 20% year-over-year rise.
The report said that another IT major Tata Consultancy Services (TCS) had also stated similar concerns earlier.
However, he said that Infosys isn’t seeing any rise in cancellations or demands for price cuts from its clients. The company is maintaining its margin guidance for the fiscal year.
Besides, the Wall Street Journal report also quoted Gopalakrishnan saying that the company’s £407.1 million offer for UK-based enterprise-software consulting company Axon Group PLC is a “fair valuation of the company” and that the offer had Axon management’s support.
He further added that it is possible that a rival bid may arise, but did not mention that whether Infosys would raise its offer if new bidder emerges.