Infosys CEO says demand in Europe not impacted by Ukraine crisis

India’s second largest IT services firm Infosys has said that the situation in Ukraine has not impacted the demand environment when it comes to European clients, and the company will see over the next few quarters on how things pan out.

Infosys CEO Salil Parekh, during a post-earnings investor call last week, also said as far as the recruitment situation is concerned, the company has centers in eastern Europe and “we see that growing quite well for us.”

“So, I have understood first (question) was, is the situation in Ukraine impacting any demand in European clients, if that is the question. Currently our conversations and discussions with clients in Europe do not see any impact on the demand environment for us because of this situation,” Parekh said during the call, as per the transcripts submitted to the exchanges on Tuesday.
He added: “As we go through the next few quarters and so on, we will see how it plays out depending on the duration and so on.”

To another question on the impact of the ongoing Russia-Ukraine conflict on the attractiveness of eastern Europe for talent hiring, Parekh noted that the company’s centers in the region are growing well.
“…the recruitment situation, we have centers for example in countries in Eastern Europe and we see that growing quite well for us,” Infosys’ top honcho said.

“Today we have no center in Ukraine but the other areas we have been expanding in and that has developed quite well,” he said.

Infosys’ centers which are in other geographies in eastern Europe are seeing good growth.

“Poland and Romania are the locations where we have centers and we are actively recruiting and scaling up in those locations,” Parekh affirmed.

Infosys on April 13 had reported a 12 per cent rise in March quarter net profit and said it is moving its business out of Russia — joining a growing roster of companies that are pulling out of the country following Moscow’s invasion of Ukraine.

The Bengaluru-headquartered company saw its net profit in January-March surge to Rs 5,686 crore and projected a 13-15 per cent revenue growth in the fiscal year that began on April 1, 2022.

However, its weaker-than-expected earnings for the March quarter sent its stocks tumbling on Monday, once trading resumed after a two-day holiday last week. PTI