Sunday, April 17, 2011

Infy in trouble !

Infosys' profit in the three months has gone down by a fair level. NSE and BSE both 317 points down.

Increasing competition with TCS, the biggest software exporter in India, and other companies is also increasing churn rate. Attrition in the fourth quarter was 17% compared with 13.4% a year ago, Infosys said. The goal of senior executive empowerment is laudable, but multiple responsibilities for business heads might be causing under-performance in some areas.
Infosys has lagged behind peers in some emerging and growing businesses. In many of the emerging areas, such as infra management, testing services and BPO, Infosys has lagged behind TCS in terms of revenue growth. Infosys's infra management top line grew by only 13.6% in CY10, compared to 39.5% for TCS, while BPO services grew by 17% compared to 23% for TCS. The one area in which Infosys has done particularly well is enterprise solutions.

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