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Infosys Outsourcing Pays Off

Infosys Technologies Limited leaped to an excellent start in the 2006-2007 financial year due to outsourcing from Western countries that jump-started its net profit by 49.2 per cent in the first quarter of 2006. The company improved its earnings and acquired 38 new clients as well as fresh orders as a result of continued boom in global outsourcing. The company`s initial forecast was a year-on-year growth of 34.8 percent and 35.9 percent.

Nandan M. Nilekani, CEO, President and Managing Director told the Hindu newspaper, "Business performance was going to be much more robust than what we had anticipated in April. Besides, the depreciation of the rupee against all major currencies also added to the growth." Mr. Nilekani justified the decision to revise the revenue forecasts after the first quarter, saying that the rupee depreciation alone contributed "a 2.2 percent improvement in margins" during the first quarter.

Infosys now expects a growth of 42 percent to 43 percent during the second quarter over the corresponding quarter in 2005. For the full year, it expects a year-on-year growth of 40.2 percent and 40.7 percent. Earlier, the company had projected its annual growth rate of 28.7 percent and 30.7 percent.