Dalian: The grim economic situation in Europe has become a big concern for Infosys Ltd, India’s second-largest software services exporter. Therefore, it is dynamically diversifying into other fast-growing markets such as China, a top executive said.
While the US and Europe markets are too big to ignore, Infosys, which competes bigger rival Tata Consultancy Services (TCS) and smaller Wipro Ltd, is expanding in neighbouring China, planning to roughly triple its staff headcount to 10,000 in 2-3 years.
“Right now, of course, the economic situation is the biggest concern because it’s something that’s outside our control, but will have an impact on the global economy and hence our industry,” Executive Co-Chairman Kris Gopalakrishnan said on the sidelines of the World Economic Forum (WEF) in northeastern Chinese city or Dalian.
Infosys derives more than 70 per cent of its revenue from the United States and Europe.
Slowing U.S. and European economies, volatility in the rupee, severe competition, rising wages, high staff turnover rates and management shake-ups at Infosys and Wipro have been hampering growth in India’s $76 billion software services sector.
The United States alone accounts for about half of the revenue of India’s IT outsourcing industry.