India's Infosys sees slow IT services business

Published: 27 Feb 2009 01:27:51 PST

BANGALORE, Feb 27 - Infosys Technologies , India's No. 2 outsourcer, expects IT services business to be slow in the foreseeable future as clients delay technology spending amid the global economic crisis, its chief executive said. Nasdaq-listed Infosys would also hand out minimum wage rises in April to its staff, Kris Gopalakrishnan told reporters on the sidelines of an industry conference on Friday.

"This is going to be a prolonged downturn," he said referring to the global economic slowdown.

India's large pool of English-speaking engineers and cheaper wages have helped attract outsourcing from Western firms such as Citigroup , General Electric <GE.N>, Qantas and Airbus .

But a recession in the United States, which accounts for more than half the sector's revenue, and turmoil in the global financial sector have halted the sector's scorching pace of growth and battered stocks.