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iGate CEO sees IT spending remaining on track in 2013

April 12, 2013
IT spending by companies in 2013 is likely to remain on track with their budgets, driven by spending on new areas like cloud, mobility and data analytics, says the CEO of iGate, Phaneesh Murthy.

Global spending on IT is set to see a 4 per cent rise in 2013 to $3.8 trillion, according to a forecast by technology research firm Gartner.

iGate announced its first quarter results on Thursday, reporting a 44 per cent increase in net profit to $34.8 million for the January-March 2013 quarter on steady growth across verticals.  Revenues for the first quarter of 2013 increased four per cent to $274.9 million from $263.3 million in the first quarter of 2012.

In a conference call with analysts, Phaneesh Murthy said, "We see spending continuing to track closely with budget this year. So that's actually a fairly positive thing that the budgets have gone up marginally. A lot of the spending that we're seeing is associated around the new technology spaces like mobility, the cloud and also the social analytics and big data areas."

The company's gross margin stood at 38.1 per cent for the first quarter compared to 40.2 per cent in the same period last year.

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