Financial space still a challenge: Gopalakrishnan

The banking and financial services space remains challenging for Indian IT companies with the Libor scandal being the latest addition to the list, Infosys Executive Co-Chairman Kris Gopalakrishnan said on Thursday.

Speaking on the sidelines of the announcement of the 8th India Innovation Summit to be held in Bangalore from August 30-31, 2012, Gopalakrishnan said, “Clients are now getting used to slow growth and IT companies are positioning themselves to do business in this economy at slower velocity.”

Adding that he cannot see an economic revival happening in the next two to three years, he said that some companies would continue spending in discretionary sectors. “I’m optimistic that as the situation improves, growth rate will also pick up,” Gopalakrishnan said.

Stating that the US economy is presently more attractive than Europe, he said that Infosys is heavily investing in Europe as well.

“The ongoing economic slowdown is putting pressure on company budgets, but with new financial regulations coming in place, a lot of IT work will happen,” he said.

Comments (+)