The earnings come at a time when the industry is seeing massive layoffs that have surpassed the levels from the Great Recession the world went through 2008-2009, according to reports.
Since late last year, technology companies were on a recruiting spree as strong demand for digital transformation led to the need for talent. Employee costs went through the roof for several technology majors such as
and Tata Consultancy Services.
However, a recession-like situation in economies like the US and the UK raised concerns over demand and saw companies cutting down jobs.
After releasing its September quarter earnings, Infosys sounded cautious on the macroeconomic environment in both the US and Europe. These two regions together make for more than 85% of Infosys’ revenue.
The cautious word came even as the Bengaluru-based software major raised the lower end of its revenue growth guidance for the current financial year to 15-16% from 14.-16%.
Companies had said clarity on client budgets will emerge only in January. So, the Street will be all ears to hear out management’s commentary and any tweak in the guidance.
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