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Oct 11
2007
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Infosys ups guidance. Profit up 18%Posted by Bipin in Untagged |
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Infosys has upped its FY08 guidance and reported profit increase of 18% for the past quarter. What is the real story?
Infosys confirmed that firming of rupee has not created a dent in its earnings. As the US economy slows down, more IT work goes offshore. This is contrary to what one would expect. The reason is simple. As cost pressure increases, companies look for further reduction in expenses. Taking work offshore has proven to be an effective way of reducing expenses. There is also greater confidence in getting IT work done offshore in US management.
Companies such as Infosys, TCS, Wipro which have dollar revenue and rupee expenses, have interesting challenge to make sure they come out ahead. They have to constantly drive up the dollar revenue (to keep in check the effect of declining dollar) and keep rupee expenses in control. Infosys has just confirmed that they know how to do this balancing act.
Companies such as Infosys, TCS, Wipro which have dollar revenue and rupee expenses, have interesting challenge to make sure they come out ahead. They have to constantly drive up the dollar revenue (to keep in check the effect of declining dollar) and keep rupee expenses in control. Infosys has just confirmed that they know how to do this balancing act.
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