Allied Capital Inc Follows Infosys Raise Sales Forecast

New York, January 23, 2015 (Newswire.com) - India second largest software company, Infosys Ltd has adjusted its sales forecasts with greater than expected demand being felt in Europe. In statements released today, the Bangalore based software company revised its October forecasts of sales growth of between 9-10%, upwards to figures of between 11.5-12% increased revenue in dollar terms.

With Europe recovering from its debt crisis, Infosys joins fellow software provider Accenture Plc in posting higher than forecast growth in sales and revenues, as European demand for software outsourcing grows as a result of expanding infrastructure and associated costs in many European nations. With spending on information technology projected to rise some 3.1% in 2014, to a value of $3.8 trillion, gains for revenues of IT service providers are forecast to be 4.5% over the year.

“We would expect that Infosys Ltd would be among the first software service providers to benefit from increased European demand, a sector that accounts for 24.9% of the Indian company’s total revenues. There is however still a degree of uncertainty in the U.S market, Infosys’s largest market following the restructuring after the loss of 8 key U.S executives including the head of Infosys U.S last year” remarked Richard Banbury , Technology Consultant at Allied Capital Inc.

In the three months to December, Infosys’s net income beat out analyst's projections rising to 28.8 billion rupees ($464 million) rather than the 27 billion rupee average figures. Shares of the Bangalore software company traded up as much as 3.6% following the announcement before closing up 2.8% at 3548.35 rupees. The ROI for Infosys Ltd stands at 33.26% for a year to date.

 ‘Infosys is experiencing a very healthy outlook with enhanced spending being seen in both Europe and the U.S, sales are up and operating costs have been significantly reduced at the company increasing their profitability. If they can make the right decisions in regards to replacing the executives they’ve lost in the U.S, then we can expect renewed confidence from the market” concluded Richard Banbury of Allied Capital Inc,