We are careful about acquisitions: Infosys

The country's second-largest software company, Infosys Technologies, today said it has resources to go for acquisitions but has adopted a cautious approach.

"We are careful about acquisition," Infosys CEO and MD S Gopalakrishnan told reporters here today, adding that "If we find the  right opportunity, we will move."

"We have the cash, a dedicated team and willingness," he said.

To a question that it was not aggressive on acquisition like some of its competitors and whether it was missing opportunities, he said, "We don't want to be aggressive. History has shown that 70 per cent of acquisitions do not yield to the value they promise to deliver."

 

There was also an issue of holding to employees in an acquisition, he said.

"There were no regrets on missed opportunities," he said.

"We have done reasonably well compared to our larger competitors in terms of considering organic growth and meeting objectives," he said.

Typically, the company is looking at smaller acquisitions, around 10 per cent of their revenues as per thumb rule to mitigate risk, he said.

"But we can't say we won't look at larger acquisitions or that we will not look at small acquisitions," he clarified.