MUMBAI — Infosys, India’s second-largest software services exporter, raised its top-line growth forecast for the current fiscal year on Wednesday, predicting a post-pandemic rebound in contracts as U.S. and European companies accelerate their shift to mobile technology. In constant-currency terms, revenue growth guidance for the year ending March 2022 was upgraded to 14 percent to 16 percent.Infosys is the latest company to report earnings for India’s IT sector, which includes system development, call center operations, and other cross-border services that contribute to the country’s export earnings. The French Open and steelmaker ArcelorMittal are among Infosys’ IT services clients.In the first quarter of the financial year, consolidated revenue increased 16.9% in constant currency terms to 278.96 billion rupees, marking “the fastest pace in Q1 in a decade,” according to Infosys CEO Salil Parekh.Domestic rival Tata Consultancy Services reported slower quarterly revenue growth than Infosys last week. In the June quarter, the digital segment’s share of overall sales increased to 53.9 percent, up from about 44 percent the previous quarter. The company said it plans to hire 35,000 fresh graduates during the 2022 financial year to fill the supply-side gap created as companies ramp up their IT spending.”As the need for digital talent explodes, rising attrition in the industry poses a near-term challenge. “On the other hand, voluntary attrition in IT services at Infosys increased to 13.9 percent in the June quarter, up from 10.9 percent in the March quarter.” Indian IT firms have been riding the global technology upgrade wave for the previous few quarters. The transactions signed at this time are likely to help these companies develop over the next two financial years.However, according to local brokerage Ambit, while the fiscal year 2021-22 looks promising for top-tier Indian IT firms, growth would drop to the mid-single digits the following year./n
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