The result season kicked off with IT major Infosys Ltd announcing its results for the quarter ended December 31, 2012. The company reported a revenue growth 5.7% on a sequential (QoQ) basis. However, net profits remained flat over the same period of time. This is way better than what was expected of the company. The company had announced earlier that they have seen US clients cut back on spending as well as delaying big deal spends. Given the company's huge dependence on US, such comments were perceived as a warning that the quarter results would come under pressure. But despite the warnings and pressures, Infosys was able to report decent results on an expanded client base.
The Indian IT industry is facing tough times given the uncertainty haunting the global arena. IT majors are looking at markets beyond the US and Eurozone to drive growth. At the same time, they are also cutting back on their hiring plans as well as looking at ways to trim costs. The thing is that every industry has a down cycle and an up cycle. But these cycles are short term in nature. Eventually things would get sorted out. But the essential thing is that only companies that have strong business models and are able to adapt to the changing environment will survive. And those who do will clearly come out as winners.
The Indian IT industry is facing tough times given the uncertainty haunting the global arena. IT majors are looking at markets beyond the US and Eurozone to drive growth. At the same time, they are also cutting back on their hiring plans as well as looking at ways to trim costs. The thing is that every industry has a down cycle and an up cycle. But these cycles are short term in nature. Eventually things would get sorted out. But the essential thing is that only companies that have strong business models and are able to adapt to the changing environment will survive. And those who do will clearly come out as winners.
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