Infosys today said that it is expecting an increase in pricing in the consulting and systems integration business.

The company announced this in an investor meet in the US. While the company still maintained a cautious view on pricing overall in general, it is bullish about better pricing since there is still room to grow.

Infosys in the analyst meet said that its engagement in verticals such as retail and life sciences is bringing in higher margins. It is working with a few consumer product companies to roll out technology such as multi-commerce solutions and business process-related solutions such as integrating a company's different retail processes into a unified process, which is adding to its profit margins.

In the last quarter, Infosys had given a 2-4 per cent dollar revenue growth guidance and stable pricing. Demand and pricing for more cyclical systems integration and consulting work should strengthen as the economies in the US and Europe continue to improve.

“This market segment is a huge growth opportunity for the offshore firms and critical to cracking the continental European markets where almost 50 per cent of IT spend is on project-based services,” said Mr Peter Schumacher, President and Founder, Value Leadership Group Inc.

Consulting and systems integration have been the company's growth areas. According to an Angel Broking report as on third quarter of FY 2012, Infosys got 30.6 per cent of its revenues from this vertical.

At the end of 2011 fiscal, Infosys got 66.2 per cent of its business from North America, 20.7 per cent from Europe and 10.7 per cent from the rest of the world.

venkatesh.ganesh@thehindu.co.in

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