Infy seeing increase in deal inflows

Information technology (IT) major Infosys Technologies has witnessed an increase in outsourcing deals as all major markets are back on the recovery track, a top company official said.

“What has changed in the last two quarters is that the markets have improved and deals are coming back. We see more deal-flows,” Infosys CEO and Managing Director S Gopalakrishnan told reporters on the sidelines of a CII meet here today.

As the deal pipeline is improving, the IT major is looking at diversifying its business worldwide.

“The recovery is led by the US and other emerging markets such as India and China. The US contributes to 60 per cent of the total business. Clearly, this has more impact on the Indian IT services. Proactively, we are investing more on diversifying our business,” he said.

At present, the company’s revenue distribution is 60 per cent from North America, 25 per cent from Europe and the rest from other parts of the world.

“In five years from now, we see the revenue distribution at 40 per cent from North America, 40 per cent from Europe and 20 per cent from rest of the world,” Gopalkrishnan said.

“Pricing would remain stable,” he added.

On the increase in minimum alternate tax announced in the Budget, the Infosys official said his company would not be impacted by it.

When asked if volatility in currency movement would affect business, he said any one per cent appreciation or depreciation in currency would affect margins by 0.40 per cent.