Infosys worried about change in global policies

Infosys has said changes in policies and laws, both domestic and foreign, and intensifying competition in the technology services market may impact its revenues. 

Infosys has stated that said its profitability is being affected by pricing pressures on services, volatility of the currency exchange rates increased wage pressures in India and at other locations and rise in taxes or the expiration of tax benefits, in an Economic Times report. Its revenue may get impacted because of change in domestic and foreign policies and laws.

The firm in a filing to the US Securities and Exchange Commission (SEC) said earlier this week that the global environment is still facing uncertainty, and some countries and organisations have expressed concerns about a perceived association between offshore outsourcing and the loss of jobs.

Infosys added that the growth of offshore outsourcing receiving increased political and media attention, especially in the US makes it likely for a change in existing laws or the enactment of new legislation which will restrict offshore outsourcing or imposing restrictions on deployment of and regulating wages of work visa holders at client locations This may adversely impact their ability to do business in jurisdictions where they operate with governmental entities.

Private sector companies working with these governmental entities may be restricted from outsourcing projects related to government contracts or may face disincentives if they outsource certain operations, the report added. Infosys added that retaining talent is important for maintain the company's profitability.