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The fact that software company Infosys saw a mere 0.9 per cent growth from North America – the country that contributes 63 per cent to the overall revenues — is not an issue of concern, a top official at the company said.
Mr Ashok Vemuri, Senior Vice-President and Global Head, Banking and Capital Markets and Strategic Global Sourcing, told Business Line today that the minimal growth was “a cyclical thing.”
“It is not a concern and typically at the end of the year, we have seen this fall since it is Christmas and clients are busy with budgets. There is nothing that one needs to read into this,” Mr Vemuri said.
“It is a function of the fact there is still uncertainty in the market and the fact that it is a one-off quarter,” he added.
He said that the October-December is a quarter where one sees some amount of deterioration in velocity because of budget issues. “The budgets are not out as yet, but we have very strong relationships with our clients,” he added.
According to Mr Vemuri, “the budgets will be flat - they could be slightly negative, there could be a change in the way the budgets are allocated.”
“Budgets have slowly started coming and it is not as bad as we thought it would be. It is flat to negative so we will be back to where we used to be.” Infosys' calendar year 2012 budgets are likely to be finalised by end of January to early February period in-line with past four years' trends.
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