ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon Print
Business

Indian software exporters likely to post tepid earnings amid weak technology spending

MUMBAI (NewsRise) -- Tata Consultancy Services, Infosys and other top Indian software exporters are set to show subdued revenue and profit in April-June as rising costs and weak technology spending in some of their key markets cast a pall over outsourcing demand.

Growth in the quarter is likely to be crimped by weaker-than-expected demand in the financial services sector in North America that accounts for a bulk of the software industry's revenue, say analysts. Wage increases and higher cost of visa applications could also erode profits. Besides, a 3.2% average increase in the value of Indian rupee against the U.S. dollar has further escalated the pressure on margins.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

Discover the all new Nikkei Asia app

  • Take your reading anywhere with offline reading functions
  • Never miss a story with breaking news alerts
  • Customize your reading experience

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more