Infosys revises forecast on upbeat client demand
India’s second-largest software services exporter, Infosys Ltd, on Friday raised the low end of its revenue forecast for the year on upbeat demand for its digital services from Western clients.
The Bengaluru-headquartered company said it expected revenue to grow between 9 percent and 10 percent on a constant currency basis in the year ending March 2020, compared with its previous forecast of between 8.5 percent and 10 percent. Infosys and its Indian rivals first gained prominence by offering low-cost IT solutions to Western clients.
But as customers demand traditional services like routine infrastructure maintenance for less money, the firms are betting big on digital services such as cloud computing, big data and analytics to grow.
“Digital is becoming more and more central in terms of clients,” Chief Executive Salil Parekh told reporters in the tech hub of Bengaluru. Revenue from digital offerings totalled 38.3 percent of Infosys’ overall sales in the quarter.
Brokerage Emkay Global Financial Services said it was surprised that Infosys had not raised the upper end of its revenue forecast despite strong order bookings and sales performance in the first half of the year.
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