HIGHLIGHTS-Infosys executive on demand, Europe crisis

BANGALORE, July 13 (BestGrowthStock) – Infosys Technologies
(INFY.BO: ) raised its forecast on a revival in outsourcing
demand from its mainstay financial clients, but its shares fell
as markets worried a weak European economy could curb orders.

India’s No. 2 outsourcer reported a surprise 2.6 percent
drop in April-June profit and its sales contribution from
Europe fell to about 20 percent from nearly 25 percent a year
ago and 23 percent in January-March.

For a story on the company’s results and outlook, see
[ID:nSGE6680B5]

Following are comments from senior company officials after
the result.

V. BALAKRISHNAN, CHIEF FINANCIAL OFFICER

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ON DEMAND ENVIRONMENT:

“There are good times and bad times. Good times because
there is a lot of spending happening from all customers. All
the large economies are in distress; when the economies are in
distress outsourcing increases. That is what we have seen in
this quarter also. The bad thing is all the macro economic
indicators are very bad so we have to closely watch them.”

ON EUROPE:

“We are not hearing anything from clients till now. We are
not seeing any impact on the ground but that is something we
have to watch out. If it becomes a larger issue then it could
have an impact. Right now, it looks manageable.”

ON PRICING:

“When the economy stabilises, when all the clouds go away
probably we will have pricing power.”

S.D. SHIBULAL, CHIEF OPERATING OFFICER

—————————————

ON DEMAND:

“Overall, we are cautiously optimistic. We see caution all
around but mostly in Europe. The U.S. clients have started
spending. We are seeing traction in multiple segments.”

ON EUROPE:

“Europe, there are still concerns, local concerns as well
as tail effects of the previous recession. Of course, Europe
entered the recession late and we believe it will also come out
late.
“We believe that Europe will lag behind the U.S. for may be
another quarter or two.

“Aspirationally, Europe is very important for us. We expect
that Europe will be eventually about one-third of business in
the long run. At the same time, we expect some challenges in
the medium term.”

ON PRICING:

“Our pricing is stable at this point. We are seeing
occasional renegotiations actually both upwards and downwards.
It’s part of our regular business. We are not seeing any
unusual activity.”
(Reporting by Bharghavi Nagaraju; Editing by Ranjit
Gangadharan)

HIGHLIGHTS-Infosys executive on demand, Europe crisis