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Our Bureau

Bangalore , Oct. 12

INFOSYS Technologies has said that the pricing environment is stable with an upward bias as new client wins have come in at marginally higher prices.

Mr Basab Pradhan, Head of Worldwide Sales, told newspersons that the new client wins are at 4-5 per cent higher prices than the existing ones.

The company also expects some "fine-tuning" on pricing with the existing deals that are coming up for renegotiations over next few months, he added.

Infosys has seen an uptick in prices from clients this year, in both quarters.

"We got some rate increases in 2-3 instances as renegotiations happened," Mr Pradhan told analysts in the post-earnings call. "The uptick in prices was far from becoming a trend."

Onsite billing rates during the second quarter were up by 1.7 per cent and offshore by 0.7 per cent over the previous quarter.

However, the uptick in prices was across the board and not confined to specific industry verticals or line of services, he said. "It is more a question of the excess supply in the system getting mopped up."

The Chief Financial Officer, Mr Mohandas Pai, said that the company did not clock any foreign exchange losses as all forward positions were marked to market.

Infosys has taken forward cover for $180 million at Rs 45.91 and all forward positions are marked to market, Mr Pai said, adding that the company expects the rupee to be stable in the next two to three quarters.

Operating margins stayed flat at 28.6 per cent during the quarter. "Our expense management model has demonstrated flexibility in absorbing the costs of recruiting 5,010 employees net, while maintaining margins," Mr Pai said.

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