Kris prefers smaller cos for takeovers; rules out Logica buy

Infosys is interested in acquiring companies that are 10 per cent of its size, Chief Executive Officer and Managing Director Kris Gopalakrishnan said here today.

"It will be difficult to integrate larger companies with us. We expect $5.5 billion revenue this year. So ideally we look for companies with $500 million turnover or less," Gopalakrishnan told newsmen.

Commenting on the reported acquisition of the London-based computer-services provider Logica, he said there is no proposal to acquire Logica. The company has a core group that looks in to acquisitions and mergers of smaller companies, as they can be easily integrated, he added.

"We will definitely look at consulting, business process outsourcing and other platforms to leverage," he said, hinting that the company is focusing on tapping the British public services sector to expand.

Replying to a query, he said whatever is happening in Europe is a cause of concern not just for IT industry but for other industries as well.

"We should see how the stimulus packages announced by the various European governments and the EU will work and hope that they will improve the situation," the Infosys chief said, and said that it is high time that domestic IT companies need to change their focus to regions other than North America and Europe to derisk themselves.

Gopalakrishnan further said as a policy mater, Infosys will eventually change its revenue focus to 40, 40 and 20 per cents from the US, Europe and the rest of the world from the existing 62, 25 and 13 per cent, respectively.

Replying to a query on whether the company is rethinking on its expansion plans in Andhra Pradesh in the wake of the recent political disturbance over the demand for a separate Telangana state, he said the company always plans to invest ahead, which will automatically create the expected growth.