Infosys, India’s second-largest IT services provider, today said the company saw discretionary spending coming back in its key regions, including the US and UK.
“We see discretionary spends coming back in the US and to some extent in Europe,” Kris Gopalakrishnan, executive co-chairman of Infosys said on the sidelines of an event organised by the Confederation of Indian Industry.
In the quarter ended June 30, Infosys said its business had been impacted, as certain clients were holding back their discretionary spends.
The company, which derives about 30 per cent of its revenues from consulting services, is heavily dependent on discretionary spending. During uncertain times, clients usually cut back on their spending on long-term projects which they make using their discretion.
Gopalakrishnan, however, said there was not much improvement in the decision making cycle. “Decision making is slower but there are enquiries coming in and decisions being made. Decisions on larger projects are taking longer time,” he added.
Among the verticals, Gopalakrishnan said financial services continued to be under pressure, owing to a series of challenges, the latest being the libor issue. “All of these are putting pressure on costs and there are apprehensions there would be a slew of regulations. The positives are that these regulations will make the companies implement newer IT systems, which may trigger a wave of investments,” he added.
