Infosys seeing increase in deal inflows

Infosys seeing increase in deal inflows

Mumbai: Software major Infosys Technologies on Wednesday said more IT deals were coming in the past two quarters as all major markets are back on the path of economic recovery.

“What has changed in the last two quarters is that the markets have improved and deals are coming back. We see more deal flows," Infosys CEO and MD S Gopalakrishnan told reporters on the sidelines of a CII meet here.

IT companies were hit hard during the global economic slow down, the worst in the past 60 years, triggered with the fall of US-based Lehman Brothers in September 2008.

As the deal pipeline is improving, the IT major is looking at diversifying its business worldwide.

“The recovery is led by the US and other emerging markets such as India and China. The US contributes 60 per cent of the total business. Clearly this is having more impact on the Indian IT services. Proactively we are investing more on diversifying our business," he said.

At present, the company’s revenue distribution is 60% from North America, 25% from Europe and the balance from other parts of the world.

“In five-years from now, we see the revenue distribution at 40% from North America, 40% from Europe and 20% from rest of the world," Gopalkrishnan said.

Pricing would remain stable, he said.

On the increase in minimum alternate tax announced in the Budget, he said that his company would not be impacted by it.

When asked if volatility in the currency movement would affect business, he said 1% appreciation or fall in currency would affect margins by 0.40%.