Infosys prospers despite slowdown

Outsourcing firms are worried about the slowdown in Europe and the US

Indian outsourcing firm Infosys has warned that spending among its biggest clients on IT is slowing.

Infosys, which provides services for companies wanting to outsource their IT operation, said economic uncertainty was delaying decision making.

However profit before tax for the three months to the end of June was 15.5% higher at $336m (£165m).

There were opportunities for growth as customers were "relentlessly" focusing on improving efficiency, Infosys said.

"The environment continues to the challenging," said chief operating officer SD Shibulal.

"We are seeing bad news coming out of banking and retail," he said. "There is still a lot of pain."

It is particularly reliant on the US economy, which accounts for almost 63% of its revenue.

Demand for its consulting services amongst market-leading firms continued to be strong, the company added.