The Infosys’ big week wherein the outsourcing company scored numerous deals and expanded its business in multiple areas around the world. Since ringing in the new year, it seems that at least for now the company has lost a little bit of its steam and acquisition of the contracts have waned. The company has lost a little bit of its steam and acquisition of the contracts have waned. The company’s release of its Q4 result, it was highly anticipated in the market as most of the results of the company as an indicator of the performance of its peers. By posting better than expected profits, the Infosys beat analyst expectations in that regard, which most took as a sign of the recovery and improvement for the outsourcing companies from the impact of the global economic slowdown. The company added 32 new clients to its roster and for 2010 Infosys was said to be chasing multiple deals in the $100 million – $300 million range.
They see a different picture, since the company has acquired only one deal. This is with the biotech company, Elan Pharmaceuticals a subsidiary of Elan Corporation and although the financial details of the deal were not disclosed when compared with Infosys performance back. The outlook for Infosys upcoming quarter results could show a weaker performance for the company. The multiple big deals in the $100-$300 million range has yet to materialize. Infosys is focusing more on the expansion front rather than focus on the client acquisition. Infosys has spoken up about hiring expatriates for the company, lamenting India’s visa ruling for foreign workers. From its previous target of 16,000 prior to its Q3 results, Infosys hiring target for the piscal year is 25,000 people move up from its previous target of 16,000. WIth the mind the company has been staking out universities all over India for the future employees.
With a fewer than expected new clientele in its roster, it is a gamble for the company to focus effort on expanding a workforce. It does not help that emerging nearshore rivals are gaining steam, attracting attention from big name clients including as GE, Thomson Reuters and CItigroup and even though these companies, Ness Technologies of Israel has been hurt a bit more than most by the global economic slowdown, it has still managed to score two new contracts. The first is a $19 million land registry deal for Czech Geodetic and Cadastral Office and an $11 million contract with the Israel’s Ministry of Immigrant Absorption, this is not to mention an extension of the contract with Thomson Reuters Israel. To pursue, while it is expected that Infosys has its own business goals to pursue upon the evaluation. The Infosys performance for one and a half months in 2010 is certainly less than stellar when compared with its performance in just one week. If the business for the company fails to improve before the next quarter ends then 2010 might not be a good year for the Infosys.
REFERENCE:
http://www.blog.infinit-o.com/infosys-slow-start-2010/
