Infosys COO cautions investors of volatility but says will meet revenue guidance

Infosys Chief Operating Officer (COO) UB Pravin Rao told investors the IT company will face volatility owing to weak spending from sectors like energy and insurance.

However, he said Infosys will meet its FY17 revenue guidance of 11.5-13.5 per cent.

"Overall demand continues to be volatile," said Rao, who is also a member of the board of Infosys. "We still remain confident of our guidance of 11.5-13.5 per cent. But at the same time, given the volatility of our business, given the propensity of our clients to react to volatility, we will expect some short-term quarterly bumps and ups and downs, but for the year, we remain confident,” Rao told investors.

He added Infosys is facing a slowdown with its enterprise resource planning (ERP) and business process outsourcing (BPO) businesses.

Recently, Infosys had done a re-shuffle in its back-office outsourcing business and tasked Anantha Radhakrishnan with turning around the fortunes of the BPO unit.

"We continue to face tremendous pricing pressure on the "run the business" side. It's something we've seen over the past couple of years and won't go away...Whenever a deal comes for renewal, from the client's side you can expect anywhere between 30 to 40 per cent savings," Rao said.