Bangalore: Infosys Technolgies is an undoubted major brand equity in the Indian Information and Communications Technology (ICT) segment. Notwithstanding the overall global gloom in the software segment, Infosys has posted positive results during the first two quarters of the fiscal 2002-2003.

Indiainfo.com spoke to Infosys chief executive officer, president and managing director Nandan Nilekani on Infosys and the ICT sector per se. "We've not laid off any employee during hard times," he said on the outlook of Infosys during the tough times.

"Outsourcing to the right vendor can decrease costs significantly while not compromising on quality. It is for this reason that the top IT vendors in India stand to gain significantly in the short and medium term," he said while explaining that the IT spending and budgets were still tight.

Asked about the negative publicity that Infosys has been attracting of late vis-à- vis Phaneesh Murthy and 'Patni' article in 'Economic Times', Nilekani curtly said, " We are very focused on our business."

Excerpts of the exclusive interview:

Infosys has been posting positive results in the first two quarters of this year, does this reflect a general turn around in the software industry?

There is an enhanced interest in the offshore model, which is good news for companies like Infosys. We also believe that the high rate of growth the Indian Information Technology (IT) industry witnessed earlier will not be replicated as the industry matures and consolidates itself.

Given the gloom in the software sector, what do you perceive as the future outlook?

IT spending and budgets are still tight. However, this has seen an increasing interest amongst global companies to outsource. Outsourcing to the right vendor can decrease costs significantly while not compromising on quality. It is for this reason that the top IT vendors in India stand to gain significantly in the short and medium term.

What has been the strength of Infosys in tiding over critical times?

Leveraging the offshore model continuously, effective cost control, relentless execution, building a strong sales engine, continuous investment in research and development (R&D), recruiting and retaining the best and the brightest.

In times of recession like this, what is your word of caution, useful tips to young professionals and upstart companies?

Infosys has also always embraced the PSPD model – Predictability, Sustainability, Profitability and Derisking – which has helped the company maintain a sturdy growth over the years.

The global economic downturn has posed a number of challenges for the Information and Communications Technology (ICT) industry. Some of the steps that can be taken to overcome such a downturn include:

• Ability to provide high-value solutions to our clients;



• Moving away from dotcom and venture-funded business;



• Expansion of services and significant projects in new geographical regions;



• Staying abreast of cutting-edge technologies and research in various technology arena.

With China expected to come on par or even forge ahead of India in the software segment, what measures need to be mooted to keep abreast?

Indian companies have demonstrated speed, imagination and hard work to get where we are today. We will have to demonstrate more of the same to thrive in this constantly changing and competitive landscape. Indian companies already have an advantage and we need to capitalise on it.

Indian industry should continue to evolve the services framework and build on customer relationships. These will enable us to maintain the lead in terms of value added services.

India should take advantage of the Chinese market as well as Chinese resources. The Chinese government is very keen for Indian software companies to set up base in China.

Are the state and Union governments matching the efforts of the industry in promoting the software sector?

The government has recently amended labour laws to accommodate late shift working, women workers able to work at night, and so on. There are also good facilities provided by Videsh Sanchar Nigam Limited (VSNL), Software Technology Park of India (STPI) in terms of bandwidth and connectivity. This is helpful in terms of setting up a unit to render Business Process Outsourcing (BPO) services out of India. The Karnataka government had also recently announced an ITES policy, which is very encouraging.

The growth of the software industry in Karnataka has been very promising thanks to the support of the Karnataka government and the vision of Chief Minister S M Krishna. The government has been very dynamic and pro-active in its development policies. It has created a favourable climate for investing in the state and has made unique offerings in terms of resources.

Infosys CEO, president and MD…How does it feel to fit into three boots?

I am very excited about my job. The present business environment is very challenging globally. While there are many obstacles in the near-term, the future looks promising. Infosys is fully prepared to take advantage of those opportunities.

Infosys seems to be getting some bad publicity vis-à-vis Phaneesh Murthy, 'Patni' article on 'Economic Times'… your comments…

We are very focused on our business.

What is your lay-off policy, if any?

We have not laid off any employee in the company.

How many jobs are you going to create? What is your time plan?

We are looking to add about 1,000 people (gross) over the next two quarters.

Is it justified for cash-rich companies like Infosys to get stamp duty exemption?

The state provides various incentives to attract large investors. Stamp duty exemption is one of it. Being a public company, we need to ensure that our cost of investment is reduced to enhance the returns to our shareholders.