Obama Budget Cuts Set to Squeeze Infosys’ Sales: Corporate India
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Infosys Ltd., the Indian software developer which plunged last week after forecasting sales that lagged estimates, may struggle to win clients as U.S. President Barack Obama’s $85 billion in spending cuts prompts companies to rein in spending.
Fifteen percent of prospective contracts for Infosys were canceled in the year ended March 31 as customers reduced discretionary spending for “rainy day regulations,” said Ashok Vemuri, head of Americas at the Bangalore-based company. U.S. budget cuts in manufacturing and financial services may prompt companies in those industries to reduce investment in information technology products, he said.