As the first Indian company to join the Nasdaq-100 in December, Infosys has consistently proved the success of an Indian-centric global model. Last week, the company saw staff costs and profits increase in parallel – both have leapt 40 per cent in the same timeframe. This news underlines the intrinsic value of the skilled Indian workforce and the potential it holds.
Infosys’ ongoing reliance on overseas income – with 90 per cent of its contracts from companies headquartered outside India – could result in the deceleration of its growth. As more Western IT services businesses look to invest in an Indian presence to meet growing demand, Infosys might find itself fighting for the Indian advantage it has held on to for so long.
A question that must be on everyone’s lips is ‘what will Infosys do next?’ A 40 per cent jump in profit on 2006 – to $989 million from $700 million – means Infosys could be looking to acquire at home or overseas in the near future.
World markets will be watching closely as Tata Consultancy Services releases its figures today, and as Wipro does the same on April 20. Infosys has set the bar high.
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