Nov. 17 (Bloomberg) -- Infosys Technologies Ltd., India's second-largest computer-services company, said orders from its biggest clients may increase next year, betting the global economic slowdown will force companies to turn to cheaper labor.

A survey of the top 100 clients has shown that several customers may outsource more services in 2009, Kris Gopalakrishnan, chief executive officer of the Bangalore-based company, said in an interview in New Delhi today, without specifying a number.

Infosys, and larger rival Tata Consultancy Services Ltd., face concern whether they can sustain earnings growth as the economic slowdown in the U.S. forces customers to cut technology spending. The Indian provider made about 60 percent of its second-quarter revenue in the U.S.

``Even if the spending rates aren't increasing, Infosys always garners a greater share of the offshoring,'' Harit Shah, a Mumbai-based analyst at Angel Broking Ltd. said in a telephone interview. Shah has an investment rating of ``buy'' on the stock.

Infosys rose 1.6 percent to 1,232.40 rupees at the close of trading in Mumbai, while the Bombay Stock Exchange Sensitive Index declined 1 percent. The stock has dropped 30 percent this year compared with the benchmark gauge's 54 percent fall.

Infosys, which cut its earnings forecast in October, is repeating a client spending-plan survey because the deterioration in the financial markets in September rendered the company's previous poll irrelevant, Gopalakrishnan said on Oct. 16.

``What I have found in my interactions is that some companies would increase their offshore outsourcing,'' Gopalakrishnan said today on the sidelines of the World Economic Forum's India Economic Summit. ``Typically when there is a slowdown the stronger companies will continue to invest.''

`Mood Still Negative'

The reason that not all top clients have said they will increase work sent to Infosys is because the ``mood is still negative,'' he said.

Gopalakrishnan said while customers will decide on their budgets mostly in the beginning of next year, the computer- services provider may get a larger share of work sent offshore.

Infosys won orders this quarter including those specifically to help customers tackle the economic slowdown, Gopalakrishnan said. The orders include technology consulting and services in ``multiple'' industries including banking and finance clients.

``What is different in this period is that the uncertainty is definitely higher and till stability comes you are always worried that something bad could happen.''

Lehman Brothers Holdings Inc.'s bankruptcy was the trigger that led Infosys to ``re-evaluate'' its business outlook in October and cut its July forecast, he said. Infosys, which counts Citigroup Inc. and Bank of America Corp. as customers, generated a third of its revenue from financial firms last quarter.

``There are still uncertainties of that nature, for example the whole issue of General Motors; these are companies that have a lot of network effect on the economy.''

Maintains Forecast

Still, Gopalakrishnan said the company is sticking with its October forecast. Earnings in the year ending March 31 will probably be $2.24 a share, missing the low end of the company's July forecast of $2.32, Infosys said on Oct. 10. Net income in the fiscal second quarter ended Sept. 30 rose 30 percent to 14.3 billion rupees ($292 million), in line with analyst estimates.

Revenue for the year will range from $4.72 billion to $4.81 billion, less than the previously projected $4.97 billion to $5.05 billion, under U.S. accounting standards, the company said in October. Forecasts based on Indian GAAP were higher than July estimates because of the rupee's decline against the dollar.

To contact the reporter on this story: Harichandan Arakali in New Delhi at harakali@bloomberg.net.

Last Updated: November 17, 2008 06:07 EST