Infosys revenue affected by rising rupee

Mumbai Aug 29: The Rising rupee has dent a hole in the pocket of software major Infosys, as the company today said the impact of the appreciating rupee was felt by its software export division.

Interacting with mediapersons here, Kris Gopalakrishan, CEO of the software giant, said the rising rupee has affected the revenue margin of the company by two to three percent in the current fiscal.

He said there was no impact of slowdown of US economy on existing deals of the company. Incidently, fifty per cent of the revenue of the company comes from software export to the US market.

Gopalakrishnan said there will be a correction of 4 to 5 per cent on contracts and on new contracts there will be a correction of 2 per cent.

It may be mentioned here that the software major ranking in the IT outsourcing services has slumped to number ten in a recent survey carried out by a leading IT magazine.

''The biggest challenge we are facing today is the low returns from the long term investments in countries like China the global customers has not taken to China what we expected,'' added Gopalakrishnan.

The company is growing at 60 to 65 per cent in Europe. The software market in Europe constitutes 26 per cent of company's overall revenue.

While on the home front, the company is planning to launch plaftform based services especially in BPO segment.

According to Gopalakrishnan, the company will continue to invest in India but the tax incentive is working at a disadvantage for the company.

He said the company is trying out various things and more than 100 patents services are in various stages of processing.

UNI