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Infy – Time to “grow up” (Part II)

Posted by Arun Uday on July 27, 2007

My earlier post on this topic (where I had suggested that Infy should take the lead in jacking up offshore billing rates) had evoked a lot of discussion, including one of the readers, who had some adverse remarks on it suggesting that mine was the “worst analysis” of Infy’s results. I had responded by saying that it won’t be long before the managements of likes of Infy will come under pressure to buck their billing rates up. Well, guess what. The ET has an article today on just that. Actually, the title itself says it all – “Password to crack the new IT matrix: Pricing power”. To quote from the article:
“Investors and analysts now want the industry to learn two new words: Pricing power…. Most companies are negotiating a price increase of 1-2% on contracts up for renewal… “

Madhu, you may be a PhD from IIMB, but I haven’t spent my years in this industry for nothing.. 😉

Posted in infosys, technology | 4 Comments »

Infy – Time to “grow up”

Posted by Arun Uday on July 12, 2007

Infy’s results y’day was the big talking point in the Indian business world as it missed its guidance after a very long time. Infy is of course known for its policy of issuing conservative guidances and for their mantra of “underpromising and overdelivering”. In fact, some people in the past had questioned this approach since analysts anyway over  time started marking up the management’s guidance nos for arriving at the actual estimates. Hence, the fact that they missed even their own conservative nos implies that certain business parameters are changing faster than even what they had anticipated. In my opinion, Infy’s next moves in the coming couple of years will be critical not only to it’s own future, but also to the entire Indian IT industry. Read the rest of this entry »

Posted in infosys, IT, technology | 14 Comments »