it major increases salary by 17%, Sets Aside $11 M for Expansion

Infosys Plays Down Competition

Posted: 2004-04-16 00:00:00+05:30 IST
Updated: Apr 16, 2004 at 0000 hrs IST

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New Delhi: recruitment will happen in the same cities where we are planning ramp-ups,” Mr Nilekani said.
Observing that the billing rates have stabilised since the last two to three quarters, he said, “We expect the billing rates to remain stable for the next couple of years as well.”

Mr Nilekani said that the company believed in developing a global delivery model (offering end-to-end solution through mulitple global presence). “It is not just about cost, offshoring or India. It’s an innovative method of doing business in the global market,” he said.

Mr Nilekani said that Infosys would invest $11 million in working towards developing a global delivery model this fiscal. The company will scale up its subsidiary in China, strengthen its banking software products and expand its newly set-up US consulting firm.

“For this year, we expect our topline to be around 31 per cent and earnings to be around 27 per cent in dollar terms. The difference between the two will be invested in these initiatives across the globe,” Mr Nilekani said.

The company is looking at a headcount of 500 people in its US consulting firm in the next three years. It is also looking at a total employee base of 200 people for its China subsidiary in the next two years with an outlay of $5 million.

Infosys has also approached Reserve Bank of India for allowing more freedom in hedging its foreign exchange risks. “We are in discussions with RBI to allow us greater freedom in hedging. Currently we are allowed to hedge up to 50 per cent of the previous year’s revenues but that is not enough.

If regulations allow we can hedge our net foreign exchange for the entire year. But regulations in India do not allow that,” he said....

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