April 15 (Bloomberg) -- Infosys Technologies Ltd., India's second-largest software-services provider, forecast sales growth may accelerate this year as the U.S. slowdown spurs clients to send more work overseas.

Revenue may rise as much as 21 percent to a record 202.1 billion rupees ($5.1 billion) in the 12 months ending March 31, Infosys said today. The Bangalore-based company's forecasts beat estimates from Citigroup Inc. and Macquarie Group Ltd.

Infosys led software exporters higher in Mumbai trading as the outlook helped ease concern that slowing global growth will force banks and telecommunications companies to scale back orders. Accenture Ltd., the world's second-largest technology-consulting firm, raised its forecast last month after posting record revenue from managing computer networks.

``The primary reason why work was outsourced to India was because the same quality or better quality could be done cheaper,'' said Sanjay Sinha, the chief investment officer at SBI Mutual Fund who oversees $6.5 billion including 1.13 million Infosys shares. ``That is precisely the reason why you would continue to outsource to India when you are faced with a scenario where your business needs to cut costs.''

Infosys, the first Indian software-services company to report earnings this quarter, jumped 6.2 percent on the Bombay Stock Exchange. Larger rival Tata Consultancy Services Ltd. gained 7.4 percent. Wipro Ltd., ranked third, rose 4.5 percent and Satyam Computer Services Ltd. climbed 4.4 percent. The computer service providers were the four biggest decliners on the equity benchmark Sensitive Index last fiscal year.

Growth in Europe

``We continue to see greater growth opportunities in Europe,'' Chief Operating Officer S.D. Shibulal said in the statement. The region contributed 29.3 percent of sales in the fourth quarter, compared with 26.6 percent a year earlier. North America generated 60.7 percent, down from 62.6 percent.

Earnings will gain to 92.32 rupees to 93.92 rupees per share in the year that started April 1 from 81.26 rupees, Infosys said. The software exporter was expected to forecast earnings of 93 rupees to 94 rupees, according to estimates from Vipin Khare, an analyst at Morgan Stanley, and Diviya Nagarajan of JM Financial SK Securities Pvt.

Sales may climb to 198.9 billion rupees to 202.1 billion rupees this fiscal year, after rising 20 percent to 166.9 billion rupees in the year ended March 31, Infosys said.

American Express Co. and Goldman Sachs Group Inc. are among banks and financial services companies that are likely to increase contracts awarded to Infosys for work to be done offshore, or in low-cost locations such as India, in the 12 months to March 31, JM Financial's Nagarajan said on April 7. JM Financial recommends clients buy Infosys shares.

Banks, Finance Companies

Still, banks and finance companies, which accounted for 27 percent of sales in the fourth quarter, are taking longer to award contracts, Chief Executive Officer S. Gopalakrishnan said. The companies, whose contribution to sales fell from 29.6 percent a year earlier, haven't cut any contracts, he said.

The U.S. economy has slowed to a ``virtual standstill,'' the International Monetary Fund's chief economist, Simon Johnson, said on April 3. The IMF cut its forecast for global growth this year and said there's a 25 percent chance of a world recession, citing the worst U.S. financial crisis since the Great Depression.

Concerns that U.S. companies may pare orders as the economy falters, as well as the Indian rupee's record rally, made Infosys the worst performer on the Sensitive Index last year.

Of Infosys's 100 largest customers, 76 have maintained or reduced their spending plans for 2008, with 19 clients cutting their budgets by 10 percent, Gopalakrishnan said today. About 24 customers have increased their proposed budgets, he said in an interview. The 100 account for 82 percent of sales.

Fourth-Quarter Profit

In the fourth quarter, Infosys reported net income rose 9.2 percent to 12.5 billion rupees from 11.4 billion rupees a year earlier. The profit was in line with the 12.6 billion rupee median estimate in a Bloomberg survey of 10 analysts. Sales climbed 20 percent to 45.4 billion rupees.

The profit growth was the slowest in at least eight years after the company increased wages by 15 percent a year ago. Infosys on April 1 raised salaries in India by about 12 percent, and increased wages for workers in the U.S. and Europe by 4 percent to 5 percent, Gopalakrishnan said.

Sales growth in the current fiscal year will predominantly be in the six months ending March 31, Gopalakrishnan said.

Larger rival Accenture reported a 37 percent jump in profit on March 27, and raised its earnings forecast after cost-cutting customers outsourced more of their work. The company posted record revenue from companies sending more work overseas for the three months ended Feb. 29.

To contact the reporters on this story: Harichandan Arakali in Bangalore at harakali@bloomberg.net.

Last Updated: April 15, 2008 07:04 EDT