IT major Infosys said the billing rates for new customers could increase by 3-4 pc following the sharp appreciation of the Indian currency against the dollar.
MUMBAI: IT major Infosys on Wednesday said the billing rates for new customers could increase by 3-4 per cent following the sharp appreciation of the Indian currency against the dollar.
"The billing rates for new customers could increase by 3-4 per cent while for existing contracts it could increase by 2-3 per cent," Infosys Managing Director and CEO S Gopalakrishnan told here.
A stronger rupee against the dollar was a concern for Infosys as it earns 60 per cent of its revenues from the US.
The rupee began rising gradually from 2003. However, in the recent single quarter it has appreciated sharply by seven per cent which will take time to absorb, he added.
On the rupee outlook, Gopalakrishnan said it will continue to appreciate but the rise, if gradual, was manageable.
Going forward, Infosys expects US to contribute 50 per cent of revenues, followed by Europe 30 per cent and the remaining 20 per cent from other geographies.
He said the US sub-prime mortgage crisis was bound to have some impact on business volumes and the company was closely watching the American market, which presently was showing no signs of slowdown.
Infosys BPO Ltd Managing Director Amitabh Chaudhary said that about 100 mortgage businesses have closed in the US sub-prime crisis, of which four were clients of the company.
The unit has 30 clients, with seven accounting for half of revenue, he said.
Gopalakrishnan said the IT industry was witnessing annual wage hikes in the range of 13-15 per cent for last many years which were manageable with pricing.
On pricing pressure in BPOs, he said that there was some pressures as competitive BPOs offer contracts on single digit profitability.
However, Infosys would not consider repricing, even if they lose a couple of deals.
The verticals of growth going forward will be telecom, energy and utility sectors.
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