During the last few quarters, Indian IT firms have been witnessing the impact of volatile currency movements on their top line. This quarter too, though there have been gradual currency movements, they are not volatile. Therefore, IT firms like Infosys Technologies are not expecting any major impact this quarter. S Gopalkrishnan, CEO and MD, Infosys, on the sidelines of the CII summit on ?conscious capitalism? in Mumbai, said, ?A rapid movement in the currency within a quarter, which was like 15-20% in some quarters, is always a challenge for a firm. But now, since the currency is witnessing a slow and gradual change, we can manage and mitigate the impact.? The firm had earlier said 1% appreciation or depreciation in currency brings a 40 basis points change in margins.
IT firms like Infosys Technologies, Tata Consultancy Services and Wipro Technologies have been working on various levers, including cost cutting measures and re-looking at investments during this financial year. Gopalkrishnan added that the firm would continue to closely look at expenses. However, he added that Infosys had spent almost double on the training over the last year. ?Since the overall utilisation levels were down by about 10%, it was the best time to invest in training so that we are ready when the revival happens,? he added. During the year IT firms had also cut down on hiring.
However, with the recovery in the banking financial services and insurance sector picking up, the industry is expected to hire. Infosys had earlier said that it has given campus offers to 18,000-19,000 freshers. The firm hasn?t yet come out with projections in terms of lateral hirings.
He added that the firm was witnessing revival in the manufacturing sector and that the pricing during the quarter has been stable. ?The pricing power is expected to come back when the unemployment rate goes down and inflation starts moving up in the US and Europe,? he said.