Infosys sees 2-6 percent hike in tech spending
Thursday, 11 January 2007, 18:30 IST
Printer Print Email Email
Bangalore: Riding on the outsourcing boom and an increasing offshore pie, Indian IT major Infosys Technologies Ltd says its global technology spending would go up by two to six percent in 2007. "Though IT spending may not go up significantly in aggregate terms, we see a shift in the way companies will utilise their budgets, with more allocation to outsourcing their requirements," Infosys CEO Nandan M. Nilekani told reporters. The IT bellwether estimates tech spending budgets in the US will also see an increase of two-six percent, with outsourcing accounting for major business, thanks to the globalization of services and acceptance of the global delivery model evolved by Indian firms like Infosys. "Even in continental Europe, companies have begun to adopt the offshore model and are taking advantage of outsourcing their IT services. To tap the potential in Europe and other emerging markets, we are investing in people and technologies," Infosys chief operating officer S. Gopalakrishnan said. Though North America continues to account for the biggest share (63 percent) of its revenue, the company has been making rapid strides in Europe, which contributes around 26.8 percent of the total revenues. Referring to a Nasscom-McKinsey study, Nilekani said the company would continue to grow over 40 percent, ahead of the industry growth rate of 30 percent. "The Indian software services sector has been witnessing a phenomenal growth over the last many years. The export earnings from IT and BPO services have shot up to $24 billion in 2006 from a mere $50 million in 1991. At the current growth rate, the projected target for 2010 is about $50-60 billion from both the service segments," Nilekani stated.
Source: IANS
siliconindia