Infosys is India’s No.2 software exporter and one of the major breeders for the 60 billion indian IT industry. Infosys showed below expectation results in the first quarter. According to the sources, the major reason for such a slump has been due to the over dependence of the IT major on European and American firms.
The European slump is still unfolding.There are talks especially from the government of US and Europe about the government spending coming to an end. These US companies get benefitted especially when the american firms get criticised for outsourcing overseas and increased spending on projects overseas.
Infosys has added only 26 clients this quarter which has been one of the lowest figures for this company in last 4 years. The company has been facing major setbacks on companies cutting on costs and the profit marjin have been decreasing. The present situation showcases that the future of the company is dark and more worrisome.