India?s IT bellwether Infosys Technologies has said there are no immediate concerns over the impact of a possible slowdown in the US economy and the sub-prime crisis, but said a clear picture would emerge only in January-March quarter. Infosys CEO and managing director S Gopalakrishnan also said there are indications that the IT budgets would not have an impact on offshoring of services to India and the company was hopeful of price increases.
?The early indications and from past experiences we are seeing that offshore should get a disproportionate proportion of the IT budgets. Offshore is mainstream now and companies derive value and the value will drive the decisions. The trend will continue,? he said on the sidelines of a Manufacturers? Association for Information Technology (MAIT) meet here on Friday.
However, he said the uncertainty whether there is a slowdown or not in the US economy was not good for the IT sector. ?If there is a slowdown, companies will learn to manage, if there is no slowdown, things are okay. But the uncertainty delays decisions,? he said.
Gopalakrishnan said Infosys was not seeing any impact on the pricing and the company was hopeful of increasing the prices by 2-5% when the contracts came up for renewal. ?Pricing is impacted by overall costs and customers know that the costs in India are going up. So, the environment for pricing is actually favourable,? he said. For the quarter ended September 30, Infosys had 1.9% blended price increase on a sequential basis. The Infosys CEO also said the company has not witnessed the subprime woes in the US affecting its business. ?We are seeing new projects getting started and we have had customer additions in financial services sector in this quarter (Oct-Dec),? he said.