IT spends in good shape; see continued strength in U.S., European markets: Infosys CEO

‘Global IT spending is in a good shape and the digital focus of clients is quite strong’

India's second-largest IT services company Infosys is "comfortable" with the higher revenue growth guidance of 14-16% it gave for the full fiscal, as global IT spends are in "good shape", CEO Salil Parekh said on Tuesday.

Infosys' top boss told PTI in an interview that the company sees continued strength in both U.S. and European markets, although it is keeping a close watch on the macroeconomic environment as "these are things one has to monitor on a constant basis".

The optimistic commentary from the Infosys management comes even amid talks that the global economy may be facing an increased risk of recession.

Many analysts have flagged concerns over higher-than-expected inflation, and some large global tech companies are pulling back on aggressive hiring plans due to concerns about a looming economic slowdown.

Mr. Parekh asserted that global IT spending is in a good shape and the digital focus of clients is quite strong.

That, along with cost efficiency and automation are acting as twin engines, he said.

If indeed the global economy faces more difficulty going forward, automation and cost efficiency will become even more critical for companies, he reasons.