Software service supporters in many countries are largely being affected by the happenings around the world. India is no exception and Infosys seems to be demonstrating this perfectly
Bangalore, 15th Oct., 2016, Red Newswire/-
Following Brexit, most of the enterprise world is seeing a sort of inflation. And now, with the US election right on the toe, the push is even more defined. Western clients of Indian software exporters have started holding back, and this trend has been going on for quite a while. This is primarily because the world seems to be getting more and more unpredictable by the day. These traders are now waiting to see what will happen during the US elections and how Brexit will play out.
Infosys is no exception to this trend. In fact, the software giant seems to be showing more affinity to the affairs than most others. In less than three months, the company has already revised its revenue outlook twice.
Second-quarter growth of the company was reported to be about 6.1 percent. Previously, the company had revised the current quarter’s revenue growth to be about 10.5 to 12 percent in July. But now, the company has updated these numbers, stating that the growth will be a mere 8 to 9 percent in constant currency terms in the fiscal year through March 2017.
According to Infosys Chief Executive Vishal Sikka, Western clients are currently showing a cautious behaviour, which is largely affecting the business. Apparently, Infosys was a technology partner of Royal Bank of Scotland, in a project to build a new bank in Britain. Unfortunately, the idea was discarded, further lowering Infosys’s stats.
Following this announcement, Infosys’s shares went down more than 5 percent because of startled investors and shareholders.
“We don’t believe that the structural story of outsourcing has changed,”
said Nilesh Shetty, a fund manager at Quantum Asset Management Company Pvt Ltd.
“The engineering talent in India is still priced a lot lower than the developed world.”
Image credit: Reuters