Cautions on external environment, but says it won’t lead to layoffs
IT major Infosys expects its September quarter growth to be better than what it achieved in the April-June period, though it cautioned that the external environment still remained uncertain. The company, however, said no employee has been laid off on account of it.
Addressing an analysts’ meet held at its Pune campus on Friday, Infosys CEO Vishal Sikka said, “There is a focus on discplined execution in the second quarter and some of the drag factors of Q1 have largely been arrested.”
The IT major had recorded a sequential revenue growth of 2.2% in dollar terms for the first quarter of FY17, which was well below analysts’ expectations. It also lowered its annual revenue growth guidance to 10.5-12% from the earlier 11.5-13.5%. Sikka said it would have a
It also lowered its annual revenue growth guidance to 10.5-12% from the earlier 11.5-13.5%. Sikka said it would have a more clearer picture on the annual revenue guidance only after the second quarter results.
On the overall demand environment, the CEO said that they did not anticipate a Brexit-like impact in the case of Royal Bank of Scotland. The bank had terminated its contract with Infosys.
“We have seen some client specific softness, which we did not see in the beginning of the quarter,” Sikka said. However, he added that there has been an improvement in the large deal wins and traction is coming back into other segments like consulting, finacle and India business.
On the exit of key personnel from the company, the Infosys CEO said that some of the exits were related to performance, while adding that it has got enough depth in its leadership. Infosys COO UB Pravin Rao said that the company has revamped its entire performance management process with focus on continuous feedback from the employees.
He said there is greater emphasis on high performers and promoting internal talent. Infosys, with an headcount of 1.97 lakh, had witnessed its attrition level rising and at the end of the second quarter it stood at 15.8%. However, Rao said that overall attrition has come down in the last 12-18 months and senior management attrition is pretty low.