Infosys, Wipro, TCS witness fall in European revenue share
By siliconindia   |   Monday, 26 July 2010, 21:55 IST   |    1 Comments
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Infosys, Wipro, TCS witness fall in European revenue share
New Delhi: India's top tech vendors- TCS, Wipro and Infosys witnessed a decline between one to two percent, on a quarter on quarter basis. The reason behind this is the longer sales cycle in Europe and the depreciation in European currencies. According to analysts from the industry, Europe would continue to lag the U.S. in terms of revenue growth for these companies, if the slowdown in decision making and currency issues continues. "The exposure of these companies to the PIGS economies (Portugal, Ireland, Greece and Spain) is not very significant, but the sales cycle is taking more time. In my view, Europe will lag the US for the rest of the year. Also, there could be a continued headwind on the currency front for all these players," said Harit Shah, Analyst, Karvy. The dollar has risen about eight per cent against the Euro and around five per cent against the Pound, on average in the period between April to June, whereas in the same tenure, the Rupee had gained less than one per cent. "We are seeing no client-specific issues in Europe. It is mostly the muted growth we are seeing across segments, across geographies in Europe at this point and believe that Europe will take some time to recover," said Kris Gopalakrishnan, Chief Executive and Managing Director, Infosys. For TCS and Wipro, the absolute revenues from the European region grew marginally. TCS's revenue from Europe rose to 1,972 crore from 1,949 crore, while Wipro recorded 1,397 crore in June quarter from 1,383 crore in the previous sequential quarter.

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