HIGHLIGHTS-Infosys executive on demand, pricing, wage hikes

BANGALORE, April 13 (BestGrowthStock) – Infosys Technologies
(INFY.BO: ), India’s No.2 software services exporter, forecast
stronger-than-expected annual revenue growth of 16-18 percent,
noting that a pick-up in global technology spending was
improving demand for outsourcing.

However, a firming rupee on the back of rising foreign
investment in India’s fast growing economy may keep earnings
growth muted for outsourcers, and Infosys expects its profit
margins to take a hit this year.

For a story on the company’s results and outlook, see
[ID:nSGE63B06V]

Following are comments from a senior official of Infosys
after the results.

S.D. SHIBULAL, CHIEF OPERATING OFFICER

————————————–

ON DEMAND ENVIRONMENT:

“The global economic environment continues to be
challenging, but at the same time, our customers are starting
to take decisions. Majority of the customers have closed their
budget. They believe that they will invest in the short term,
cautiously though.

“Communication service provider continues to lag behind. I
think that is the only vertical where we are seeing some
weakness.”

ON PRICING:

“Pricing will remain stable. This year our revenue
productivity has actually come down by 4 percent and for the
quarter by 1.5 percent. Most of the pricing renegotiations we
believe are behind us. There are some sporadic pricing
renegotiations.

“For the year, we have taken flat revenue productivity.
That means we don’t anticipate any changes in the pricing.”

ON STAFF ADDITION:

“During FY11, we plan to recruit 30,000 people. Last year,
we started with 18,000 and ended up with 27,000.”

ON WAGE HIKES:

“Now, we have announced on wage hike — probably one of the
best we have ever done — 13 to 17 percent offshore and 2 to 3
pct on site.
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(Reporting by Sumeet Chatterjee; Editing by Ranjit
Gangadharan)

HIGHLIGHTS-Infosys executive on demand, pricing, wage hikes