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Infosys sees a better year ahead for IT industry

PTI     January 4, 2013
Infosys Executive co-Chairman S Gopalakrishnan on Wednesday said 2013 will be a better year for the $100 billion Indian IT industry as economic environment improves and businesses invest in technology.

"2013 will be better than 2012. The global economy, I think, has improved specially in the US... China is growing faster. India has also started improving. So except for, may be Europe, rest of the world is trying to improve and it is good for the global economy. What is good for the global economy is good for the IT sector. So I hope the IT industry will have a better 2013," Gopalakrishnan said at an award function of Infosys Science Foundation.

He added, however, that uncertainties continue as unexpected events happen.

"Uncertainties will continue. What I am saying is that generally 2013 will be better. How it will turn quarter-on-quarter, will depend on the event in that quarter. Unexpected events happen," Gopalakrishnan said.

Various experts have said that flat IT budgets and uncertain macro environment may continue to challenge the Indian IT-BPO industry , but as technology becomes more central to everyday lives of consumers and corporate alike, 2013 promises to be a good year for the $100 billion sector.

Post the 2008 global financial crisis, the Indian IT industry, which saw phenomenal growth in the preceding five years on back of a over 25 per cent growth in exports that made companies like Infosys, TCS, and Wipro poster boys for investors, seems to have lost some sheen.

Factors like weakening rupee, high production input prices, hike in borrowing costs, and geo-political situation continued to plague the industry in 2012.

These along with domestic policy paralysis prompted software services industry body Nasscom to lower growth forecast for 2012-13 for IT-BPO exports to 11-14 per cent from previous fiscal's target of 16-18 per cent growth.

Industry officials say however that IT companies seem to be ready for this new "normal" and are now embracing technologies like social media, cloud, analytics and mobility to optimise and ensure efficiency in business environment, all within flat or lower than usual IT budgets.

Infosys had reported 24.29 per cent jump in consolidated net profit to Rs 2,369 crore for the second quarter ended September 30. The company's revenues were up 21.7 per cent to Rs 9,858 crore in the second quarter.

Infosys is scheduled to announce its third quarter results on January 11.

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