The primary spending impact will be in the Banking, Financial Services and Insurance (BFSI) and High-Tech verticals, according to the note.
It is a good investment option, given their strong credit rating, low cost of funds, and expected growth in loan book, he says. Chadha also said that the Indian equity markets would have been 20-30 percent lower, but for Domestic Institutional Investors (DIIs).
The impact of improved operational efficiencies and increased volumes was negated by weak demand and sluggish prices during the fourth quarter as compared to the corresponding quarter of FY'14.
Sikka is keen to transform Infosys into a next generation services company and is looking to renew all the services the company offers. He has a long-term target to grow at 15-18 percent. The company‘s long-term EBIT margin range is 25-38 percent.
After years of tactical cost-cutting, cos now face the challenge of continuous IT cost optimisation after the realisation that optimisation practices are never finished.