Infosys sees subcontracting costs going up a notch higher in June quarter

Infosys saw its subcontracting costs going up a notch higher in the April-June period as the focus on driving more digital revenues required the firm to deploy more people at onsite locations, adding on to the costs. The subcontracting costs of the company in the quarter stood at Rs 12.9 billion, a growth of 17 per cent over the previous quarter. Infosys attributed this rise to non-availability of enough resources at client sites due to short-term visa challenges. “The onsite supply chain has seen the impact of short term visa challenges and we need to ensure that it is uninterrupted,” Ranganath Manikare, EVP and CFO, Infosys, said. He said the investments by the firm towards onsite hiring would not change in the near future, though the company would be working towards optimising the subcontracting expenses. During the first quarter of this fiscal year, though per employee revenue rose to $5490 as compared to $ 5190 a year ago, higher outsourcing of work at client sites indicated pressure on company's available resources.