Infosys cuts revenue forecast in difficult market

Faced with a tough business environment, Infosys Technologies, India's second largest outsourcer, again lowered its dollar revenue forecast for the company's fiscal year ending 31 March.

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Faced with a tough business environment, Infosys Technologies, India's second largest outsourcer, again lowered its dollar revenue forecast for the company's fiscal year ending 31 March.

The company forecasts revenue for the year in the range US$4.67 billion to $4.71 billion, after a year-on-year growth of between 11.8 percent and 12.8 percent, or 15.6 percent to 17.6 percent at constant currency rates.

Infosys and other Indian outsourcers are struggling as their customers tighten IT budgets or defer decisions in an economic crisis.

In a challenging environment, Infosys' focus is on creating value for clients, running an optimised business, and evolving its business model so as to emerge stronger when the global economy starts recovering, the company said.

The company is expected to benefit from the troubles of another Indian outsourcer, Satyam Computer Services. Caught in a financial scandal, Satyam may lose customers who will turn to other Indian suppliers, Forrester said last week.

In October, Infosys lowered its revenue outlook for the fiscal year to between $4.72 billion and $4.81 billion, with year-on-year growth of 13.1 percent to 15.2 percent, or 16 percent to 18 percent at constant currency rates.

The company's revenue for the quarter ended Dec. 31 was up 8 percent from the same quarter last year at $1.17 billion, while profits were 6.4 percent higher at $332 million.

The company now reports results in accordance with International Financial Reporting Standards (IFRS). Previously, it reported them according to US Generally Accepted Accounting Principles (GAAP).

The share of the company's revenue from North America rose to 64.5 percent in the quarter, up from 61.5 percent in the previous quarter. The insurance, banking and financial sectors accounted for 34.9 percent of the company's revenue in the quarter.

The company added 2,772 employees in the quarter, taking the total to 103,078 employees as of Dec. 31. It also added 30 new customers in the quarter.

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