Indian offshoring giant keeps growing
Infosys Technologies posts strong quarterly results, another sign that India-based companies are faring well.
Impressive earnings and revenue growth by Infosys Technologies suggests that offshoring is alive and well, and that India-based companies know how to play this game.
Infosys on Wednesday said revenue for the quarter ended Dec. 31 jumped 53 percent year over year to $423 million and that its net income rose 58 percent to $112 million.
The success of the company, one of India's largest information technology services companies, indicates that sending tech work abroad has a fair amount of momentum. The scale of the controversial trend has been unclear, and there's some evidence that companies have pulled back at times from offshore arrangements.
The news from Infosys also lends credence to a recent report from Merrill Lynch. The investment firm last week published a survey of United States-based chief information officers, finding that India-based companies snag the lion's share of spending earmarked for India, and their portion is likely to grow. By contrast, the share of that India-focused spending expected to go to an Indian arm of a Western system integrator is expected to slip from 32 percent to 31 percent.