Indian Outsourcers Thriving

[OhioChick]

Thursday, October 11, 2007 10:00 AM PDT
Despite fears that a stronger Indian rupee might hurt profits, Indian outsourcing companies continue to report robust growth.

India's second-largest outsourcing company, Infosys Technologies Ltd., said Thursday that its operating margins improved in the quarter ended Sept. 30, despite the rupee's strength against the U.S. dollar. Infosys said its revenue for the quarter was US$1 billion, up 37 percent from the same period last year. Profits grew by 36 percent to $271 million during the quarter.

The company said annual revenue will grow by up to 35 percent, reaching $4.16 billion to $4.17 billion for the fiscal year ending March 31, 2008. The company added 4,530 employees during the quarter, taking the total number of employees to 80,501 as of Sept. 30.

The rupee has appreciated by about 12 percent against the dollar since the beginning of this year. Indian companies collect much of their revenue in U.S. dollars, but pay rising Indian staff costs in rupees.

The U.S. is the largest market for Indian outsourcers, accounting for about 66 percent of export revenue.

http://www.pcworld.com/businesscenter/article/138316/indian_outsourcers_thriving.html