TCS, Infosys, Wipro re-look at their strategy for European market

By siliconindia   |   Friday, 16 July 2010, 15:35 IST   |    3 Comments
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TCS, Infosys, Wipro re-look at their strategy for European market
Bangalore: TCS, Infosys and Wipro face uncertainty in procuring orders from Europe and are ramping up investments to increase their market share in Europe. Investors will focus on management comments on deal flows, the outlook for pricing and technology spending by their clients, reports Bharghavi Nagaraju of Reuters. In order to grow market share in Europe, Indian software companies are increasing their investments. According to a Forrester report, because of Europe's unstable economic situation about corporate IT budgets there may be delays or cancellations of some outsourcing projects. Analysts say that Infosys is to edge up its dollar revenue growth forecast for 2010/11 to 17-19 percent from the 16-18 percent. Due to increased competition from IBM, Accenture and Hewlett-Packard (HP), the industry is facing risks. On Friday, Infosys shares rose 2 percent to a record high of 2,882 ($62) on optimism about its results. Tata Consultancy is up 3.3 percent, versus the 5.6 percent rise in the sector index . Last month, Accenture posted better-than-expected results, indicating continued business momentum. Indian IT firms are trying to keep staff from being poached by global rivals on strong demand in outsourcing by hiring staff and increasing salaries by 10 to 20 percent on average. The Indian rupee's 3.3 percent weakness against the U.S. dollar in April-June should partially counter the impact of salary hikes and euro volatility for Indian software exporters.