UPDATE 1-Infosys: global recovery may be slow and weak

* Chairman says looking ahead with guarded optimism

* Says can’t ignore threats from highly leveraged economies

(Adds details, quotes)

By Bharghavi Nagaraju

BANGALORE, June 12 (BestGrowthStock) – The chairman of Infosys
Technologies (INFY.BO: ), India’s No. 2 software-services
exporter, said a recovery from the global financial crisis may
be slow and weak, and early signs of an emergence from the
worldwide recession cannot be taken for granted.

Infosys (INFY.O: ), an industry bellwether which counts
Goldman Sachs (GS.N: ), BT Group (BT.L: ) and BP (BP.L: ) among its
clients, in April forecast a better-than-expected 16-18 percent
rise in revenue for the year ending March 2011, pointing to a
recovery for the sector. [ID:nSGE63B06V]

The outlook for India’s $60 billion outsourcing sector,
which was hard hit by worldwide financial turmoil as clients cut
down on spending, has improved as the global economy recovers,
deal flow rises and fees stabilise.

Still, N.R. Narayana Murthy, who founded Infosys with six
other engineers in 1981 with an initial investment of $250,
struck a cautious note at the company’s annual shareholders’
meeting in the south Indian city of Bangalore.

“I look ahead with guarded optimism,” Murthy said.

A debt crisis in the euro zone and a sliding euro are
worries for India’s export-driven IT sector, which counts Europe
as its second-biggest market after the United States.

“We cannot ignore threats from the highly leveraged
economies,” Murthy said.

Infosys rival Tata Consultancy Services (TCS.BO: ), India’s
No. 1 software-services firm, has not seen any delay in
decision-making by clients despite the debt crisis in Europe,
its chief executive said on Thursday. [ID:nSGE6590CD]

Shares in Infosys, which has a market value of $32 billion,
have jumped 46 percent over the past 12 months, far outstripping
a 10 percent gain in the Mumbai market (.BSESN: ).

Investing Advice

(Writing by Pratish Narayanan)

UPDATE 1-Infosys: global recovery may be slow and weak