Info-tech

Libyan crisis can hurt us, says Infosys

Balaji Narasimhan Bangalore | Updated on March 15, 2011

Employees at the Infosys premises at Electronic City, Bangalore. If the Libyan issue is not resolved soon, it could impact the company two-three quarters down the line.



The unrest in Libya could hurt Infosys a few quarters down the line because the crisis could cause oil prices to climb and thereby put discretionary spending on hold.

Speaking on this issue to Business Line, Mr Chandra Shekar Kakal, Senior Vice-President and Global Head, Enterprise Solutions, and Executive Council Member at Infosys Technologies said, “It is too early to say what impact it will have. But if the issue is not resolved soon, it could impact us two to three quarters down the line.”

His fears are shared internationally. This month, Fidelity Management & Research Co. said the ongoing developments in the region can affect the global financial markets in a variety of ways, particularly through their influence on crude oil prices.

The Libyan furore apart, Mr Kakal said that it was heartening to see that enterprises were so upbeat. “The uncertainty is over and transformation deals are continuing. Enterprises have started their discretionary spending. Ten to twelve quarters ago, we saw the recession. Two quarters ago we saw a pent-up surge in demand. Now, we have reached a steady state.”

He said consulting and packaged software accounted for around 26 per cent of Infosys' business and that the business has grown in the last three quarters.

“In fact, the enterprise business, which was established in 1999, has been steadily growing over the last decade. We have helped with customer transformation and have taken market share away from legacy players.”

New initiatives

Talking about new initiatives, Mr Kakal said that mobility was the new thing. Infosys has already delivered solutions to SAP and now wants to develop solutions revolving around smart phones and the iPad for enterprises.

“Three quarters from now, we should have more scenarios,” he said, and added that the Libyan crisis could not have any impact upon this because, oil crisis or no oil crisis, mobile computing is important for enterprises.

Published on March 04, 2011

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