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Last Updated: Tuesday, 12 October, 2004, 06:41 GMT 07:41 UK
Infosys cashes in on outsourcing
Infosys workers
Outsourcing spells big profits for Infosys
India's Infosys has turned in sharply higher quarterly profits, helped by new contracts to run other companies' technical support services.

The company said net profits for the second quarter came in at 4.5 billion rupees ($97.1m;54m), a 49% increase on the same period last year.

Sales also rose, climbing 52% on the year to 17.5 billion rupees.

Chief executive Nandan Nilekani said the firm had benefited from a "mega-trend" towards outsourcing.

Offshore

Outsourcing - where firms contract out functions such as computer support to outside companies - has become an increasingly popular way for major multinationals to keep costs under control.

Indian companies - drawing on a highly-educated and comparatively cheap labour force - have become the chief beneficiaries of the trend.

Infosys, which exports software as well as offering outsourcing services, said it had signed up 32 new customers during the second quarter.

Chief operating officer Kris Gopalakrishnan said public controversy in the US over the jobs impact of outsourcing appeared to have faded.

"It seems to be behind us," he told the Reuters news agency.

"There seems to be less concerns coming close to the (US Presidential) elections."

Infosys said it now expected to make full-year profits of 71.3 - 71.6 billion rupees, up from its previous forecast of 67.3 - 67.7 rupees.

It added that it had taken on 5,010 new employees over the second quarter, lifting its total workforce to 32,949.




SEE ALSO:
US demand boosts India's Infosys
13 Jul 04 |  Business
Sales top $1bn at India's Infosys
13 Apr 04 |  Business
India IT firm establishes US arm
08 Apr 04 |  Business
IBM buys into Indian outsourcing
07 Apr 04 |  Business
Infosys makes first overseas buy
18 Dec 03 |  Business


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