BANGALORE: India's export-driven software services companies are set to report robust growth in quarterly earnings and a firm outlook, driven by an expected increase in clients' technology budgets.
Leading Indian outsourcers who maintain technology operations for clients such as General Electric and Citigroup have been on a hiring spree and have given pay hikes of up to 20 percent to ward off poaching by global rivals.
Tata Consultancy Services , Infosys Technologies and Wipro , the top three outsourcers, get more than 90 percent of their revenue from overseas.
"The outlook for the IT firms, especially the larger ones, looks positive in the short term. Volumes are growing. The U.S. economy is shaping up better than expected," said Mahesh Patil, head of equities, domestic assets, at Birla Sun Life Asset Management.
Indian outsourcers derive more than half their revenue from the United States, with Europe contributing more than a fifth.
Global spending on technology is likely to rise 5.1 percent to $3.6 trillion in 2011, research firm Gartner said last week, higher than its previous estimate as the dollar's recent weakness helped to push IT spending beyond its forecast for 2010.
"Given the fact that companies had not invested in technology in the past two years, they will now have to spend to improve competitiveness. So, we would see much better demand," Patil said.
Infosys, a trend-setter for India's $60 billion outsourcing sector, kicks off the earnings season on Thursday, with analysts expecting India's No.2 software exporter, to raise its fiscal 2010/11 dollar revenue growth outlook to 27-28 percent from 24-25 percent projected in October.
! "There i s all reason to expect good results as the general momentum of business has been good and the rupee has not strengthened as much as was expected," said Rakesh Rawal, head of private wealth management at Anand Rathi Financial Services.
Leading Indian outsourcers who maintain technology operations for clients such as General Electric and Citigroup have been on a hiring spree and have given pay hikes of up to 20 percent to ward off poaching by global rivals.
Tata Consultancy Services , Infosys Technologies and Wipro , the top three outsourcers, get more than 90 percent of their revenue from overseas.
"The outlook for the IT firms, especially the larger ones, looks positive in the short term. Volumes are growing. The U.S. economy is shaping up better than expected," said Mahesh Patil, head of equities, domestic assets, at Birla Sun Life Asset Management.
Indian outsourcers derive more than half their revenue from the United States, with Europe contributing more than a fifth.
Global spending on technology is likely to rise 5.1 percent to $3.6 trillion in 2011, research firm Gartner said last week, higher than its previous estimate as the dollar's recent weakness helped to push IT spending beyond its forecast for 2010.
"Given the fact that companies had not invested in technology in the past two years, they will now have to spend to improve competitiveness. So, we would see much better demand," Patil said.
Infosys, a trend-setter for India's $60 billion outsourcing sector, kicks off the earnings season on Thursday, with analysts expecting India's No.2 software exporter, to raise its fiscal 2010/11 dollar revenue growth outlook to 27-28 percent from 24-25 percent projected in October.
! "There i s all reason to expect good results as the general momentum of business has been good and the rupee has not strengthened as much as was expected," said Rakesh Rawal, head of private wealth management at Anand Rathi Financial Services.
0 Comments:
Post a Comment