Business Standard

Competition Hits Infotech Margins

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Bipin Chandran BUSINESS STANDARD

Pressure on prices, cost of acquiring business rising

Pricing pressure and the rising costs of acquiring new businesses are eating into the profitability of Indian software companies.

Software majors Infosys and Wipro reported lower profits despite growth in revenues in the fourth quarter of 2002-03.

Analysts said this was because of the high cost of acquiring businesses and skills to handle complex and long-term projects.

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First Published: Apr 28 2003 | 12:00 AM IST

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