Infosys slashes growth forecast

India’s outsourcing sector is bracing itself for a sharper than expected slowdown after the industry’s second-largest operator, Infosys Technologies, slashed its full-year forecast for revenue growth by nearly 30 per cent. In a further bearish signal, Infosys also backed away from its bid for the UK’s Axon, saying it would not match a rival offer for the company from Indian competitor HCL. “When we looked at the future and given what other things are happening, we felt it would be prudent to reduce our guidance,” S Gopalakrishnan, Infosys chief executive, told the FT. The outsourcing sector has become one of the pillars of India’s economy by providing third-party services such as software and hardware management to overseas clients. But the crisis afflicting one of the industry’s main sources of business, the US financial... [read full story]