by CIO Staff

India’s Infosys Passes $2B in Revenue

News
Apr 14, 20062 mins
IT LeadershipOutsourcing

Riding an overall boom in offshore outsourcing to India, the country’s second-largest software and services outsourcer, Infosys Technologies, announced Friday that its revenue had crossed US$2 billion for its fiscal year that ended March 31.

The company also announced a stock dividend to shareholders in the ratio of two for one, subject to shareholder approval.

Infosys of Bangalore reported revenue of $2.15 billion for the year, up by 35 percent over revenue of $1.6 billion in the previous fiscal year. The company’s profits for the year at $555 million were 32 percent higher than in the last fiscal year.

The company has forecast that its revenue will grow between 28 to 30 percent in its current fiscal year, ending March 31, 2007.

The results are based on U.S. generally accepted accounting principles.

India’s software and services exports are likely to have grown by 32 percent to US$23.4 billion in the fiscal year to March 31, according to data released in February by the National Association of Software and Service Companies (NASSCOM) in Delhi. The country is on track to achieve $60 billion in exports by 2010, NASSCOM said.

Other top Indian outsourcers are also expected to report strong growth in revenue and profit for the fiscal year that ended March 31. The country’s largest outsourcer, Tata Consultancy Services of Mumbai, and the third-largest outsourcer, Wipro of Bangalore, are scheduled to announce their results next week.

Infosys added 15,965 employees during the year, taking the total number of employees to 52,715 as on March 31. The company competes for staff with other Indian outsourcers as well as the Indian operations of multinational service companies such as IBM and Accenture.

-John Ribeiro, IDG News Service

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