Investors overlooked upbeat profits from India’s tech bellwether and focused in on the weak guidance given by the Infosys management on Wednesday.
Infosys is India’s second largest IT outsourcing firm and specializes in building software applications and system integration programs for large corporations. The company also provides back-office support to domestic and international clients.
Infosys' chief financial officer V. Balakrishnan, warned of a slowdown in client spending due to macro headwinds, which includes the European debt crisis.
This mirrors what many tech firms in the U.S. have mentioned as a challenge for 2012—a cut back in IT spending and global uncertainty.
Infosys lowered its forecast for dollar-denominated revenues for 2012, saying growth would be at 16.4 percent, lower than what they projected in October: 17.1 to 19.1 percent.
Thursday, Infosys is trading lower by 9 percent and other Indian ADR’s that specialize in IT outsourcing, are also following suit. Cognizant Technology Solutions and Wipro are both trading in negative territory.
Infosys is headquartered in Bangalore, India and recently added 3,266 employees in the December quarter, taking its total staff count to 145,088.
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