New Delhi: Infosys Technologies Ltd, India's second largest software service company, plans to reduce dependance on US customers to sustain growth in the face of a weakening dollar, according to news reports on Thursday.
Infosys wants revenue share derived from US customers reduced to 50 per cent, from the current 63 per cent, The Mint newspaper said.
The company wants to increase its European share of revenue to 30 per cent and that of customers in other parts of the world to 20 per cent, the report quoted the company's chief executive as saying at a news conference in Mumbai.
CEO S Gopalakrishnan did not commit to a target date.
Company officials were not immediately available to comment Thursday.
Information technology companies in India depend on the revenue of outsourcing orders from the US and have been hit by the dollar's slide in currency markets this year.
Profit growth at Infosys Technologies slowed to 34.6 per cent in the April-June period from 70.4 per cent in the previous quarter. In July, the Bangalore-based company announced its first-ever cut in a forecast for annual earnings, citing concerns over the rupee's appreciation against US dollar.
The rupee rose nearly 7 per cent against the dollar during the April-June period. Companies such as Infosys that have depended on US dollar earnings are now increasingly looking to non-US markets.
Last month, Infosys reached a $250-million deal with Royal Philips Electronics NV to handle its back-office work relating to finance and administration. Under the seven-year deal, Infosys was to take over the Dutch company's back-office centers in India, Poland and Thailand.
"From a geography perspective, Europe seems positive. Australia is also positive," the news report quoted Gopalakrishnan as saying.
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