Infosys has not seen clients reducing their budget plan on IT due to slowdown in the US and Europe this year: Kris Gopalakrishnan
September, 09th 2011
Infosys Technologies Executive Co-Chairman Krish Gopalakrishnan on Thursday said Infosys has not seen clients reducing their budget plan on information technology due to the slowdown in the US and Europe this year.
"If there was a cut back it would probably get reflected in next year's budget ... all companies are doing well financially... their cash positions are strong ... balance sheets are strong. They are prepared to face the slowdown period," he told reporters on the sidelines of the Seventh India Innovation Summit 2011 here.
Asked what kind of pricing environment did he see in the slowdown period, Gopalakrishnan said the pricing was stable for now as the focus on cost was there since 2008 as the companies realise the perils of global slowdown.
"The concerted action of the governments around the world to invest significantly to get the economy going probably gave some optimism, but it was shortlived ...," he said.
Asked if he expects to budget to be spent this year, he said it may not be spent as it depends on what happens in the next three months which is difficult to predict.
"Since IT service is a support industry to other sectors, the impact will be felt after the other sectors feel it," he informed.
"We're not seeing any immediate effect from the slowdown in the US and Europe. Clients are paying close attention to the developments in those regions but they aren't cancelling any projects right now," said Shibulal in a media statement.
Replying to another query, Gopalakrishnan said Infosys was agressively hiring people and it would continue.
Asked whether Infosys was looking into reducing variable pay component to protect margins, he said it would excercise the option till there is a reason for doing it.
"Right now, we are not looking into reducing variable pay component because companies have grown last quarter.
We have to wait for an event to unfold and wait for the next quarter results ... I don't have an update in the middle of the quarter," Gopalakrishnan said.