Grab an Italian masterpiece for less
Such work is important — Infosys, like its Indian rivals, is keen to move up the value chain to higher-end consulting, and get more business here. Then it can really take on western rivals such as IBM and Accenture.
All of which explains why Infosys and HCL, India’s fifth-largest tech-support group, are scrapping for the firm, prepared to pay more than twice Axon’s annual revenues of £204m to get it.
Infosys has made only one overseas acquisition before — in Australia five years ago — and prefers growing organically. Its main experience of employing Europeans is an outsourcing deal with Philips that saw it take on 700 employees in Poland.
But tougher times need a shift in strategy. Infosys is not just heavily dependent on America, but also on the banking, insurance and financial-services sector — it provides over a third of its revenues. That must be taking a hit.
Was Lehman Brothers a client? Gopalakrishnan shakes his head.
“That’s confidential. All I can say is that if there is a slowdown and your clients reduce their spending, it has an impact. Last year Infosys grew at 35%. This year we are giving guidance of 19%-21%.”
Such figures still look good, given the trouble in the West. It has even been suggested that Indian firms could now buy up ailing banks’ back-office functions.
Gopalakrishnan smiles and dodges the question. “If you’re asking me if we are going to buy a bank, no.” But, he adds, we will see more functions sold off by big business. “As industries mature, you have to bring in efficiencies.”
As for the prediction of layoffs in Indian firms as western clients drop away, he is bullish.
“These companies are not going to stop spending money on technology, they still have to run data centres, maintain applications, make changes, go after new business opportunities. And if you think about where they will invest for the future and growth, it will be in Asia and emerging markets ... You lose some, but you win some too, as new companies come up and offer new opportunities.”
Gopalakrishnan has a lot riding on his handling of this shift in world power. Modest and softly spoken, he is less charismatic than his predecessor at Infosys, Nandan Nilekani, but still broadly experienced. He spent part of the 1990s in America, working with Infosys clients. Colleagues says his character fits Infosys’s consensual management style.
“Kris is a techie, but he’s approachable and people find it easy to talk to him,” says Infosys vice-president BG Srinivas. “He also connects very well with customers.”
Industry sectors news at a glance. Interactive heatmap, video and podcast
Everything the Business Traveller needs to know to make a better trip
Get ready for the winter sports season, with our resort guides and snow reports
We are backing British business, what is the confidence of the nation and what businesses are succeeding?
Growing demand for energy, oil that is harder to reach and the rise of carbon dioxide emissions. We examine the energy challenge
With rail travel in Europe on the rise, we review the benefits of travelling by train
Enjoy further reading from Travel to Fashion, Business to Sport, discover more
Shortcuts to help you find sections and articles
1998
£47,955
12 months for the price of 11 and a 5% discount.
Offer ends 31/11/09
Check your free Experian credit report before applying
Car Insurance
to £60K + bonus (OTE £90k)
Lord Search & Selection
Location Flexible
PwC’s Consulting practice helps businesses of all shapes
and sizes work smarter and grow faster.
£85k
CPA
Highly Competitve
Specsavers
Whiteley, near Southampton
Moments from Battersea Park.
For sale with Winkworth
Find out about shared ownership.
See your free Experian credit report beforehand
Book now & save over £100pp.
11 cool resorts, lowest prices... Early Booking offers 15 Nov.
20% off selected Azores holidays taken in October with Sunvil Discovery
Get covered on your travels with a superb range of policies at great prices. Visit InsureandGo.com
World Class Golf, Spa and preferential Beach Club. Private estate overlooking West Coast
Villas from £275 per night inclusive of Golf
Contact our advertising team for advertising and sponsorship in Times Online, The Times and The Sunday Times, or place your advertisement.
Times Online Services: Dating | Jobs | Property Search | Used Cars | Holidays | Births, Marriages, Deaths | Subscriptions | E-paper
News International associated websites: Globrix Property Search | Milkround
Copyright 2009 Times Newspapers Ltd.
This service is provided on Times Newspapers' standard Terms and Conditions. Please read our Privacy Policy.To inquire about a licence to reproduce material from Times Online, The Times or The Sunday Times, click here.This website is published by a member of the News International Group. News International Limited, 1 Virginia St, London E98 1XY, is the holding company for the News International group and is registered in England No 81701. VAT number GB 243 8054 69.