UPDATE 1-Infosys CEO: client sentiment less positive in Europe

* Client spending lower in Europe, trails recovery in U.S.

* CEO sees 2011 IT budgets flat or slightly higher
(Adds detail)

BANGALORE, Oct 26 (BestGrowthStock) – Infosys Technologies Ltd
(INFY.BO: ), India’s second largest outsourcer, is seeing less
positive sentiment for technology spending among its clients in
Europe, its chief executive said on Tuesday.

Europe, which contributes about a fifth of the company’s
revenue, is recovering slower than the United States from a
slowdown, S. Gopalakrishnan said on the sidelines of an
industry meet.

“Client confidence was already lower in Europe than the
U.S. That is why they are spending lower in Europe,” he told
reporters. “Europe has been slower in recovery.”

The United States is the company’s largest market,
contributing about two-thirds to total revenue.

Gopalakrishnan said he expected the IT budgets of global
clients for 2011 would be flat to slightly positive.

European currencies have turned favourable to the company,
he said.

Earlier this month, Infosys (INFY.O: ) had warned currency
volatility could crimp growth for India’s $60 billion
export-focused outsourcing sector, after topping market
estimates for September quarter profit (Read more your timing to make a profit.) and raising its
full-year revenue forecast. [ID:nSGE69C0D2]

Shares in Infosys, whose market value has risen about 16
percent this year to nearly $39 billion, were trading little
changed in a subdued Mumbai market.
(Reporting by Bharghavi Nagaraju; Editing by Ranjit
Gangadharan)

UPDATE 1-Infosys CEO: client sentiment less positive in Europe