Higher proportion of discretionary clients who generally tend to lower their spending during a slowdown has been the main reason for Infosys announcing a lower guidance as compared to industry average. Infosys’ management, in a presentation in India Investor Conference organised by Citi Global Markets, added that Financial Services in North America continues to be challenging.
However, there is some traction in Europe and Asia-Pac regions.
Amount the various verticals, pharmaceutical is under pressure, while there is traction in automobile, aerospace, retail and manufacturing. Telecom, especially the landline side of the business is under pressure. Within the telecom space, Infosys is getting more aggressive on wireless and broadband.
On the ongoing issues on Visa in the US, Infosys said that it is not impacting its business.