Infosys is increasing its exposure to Europe and other regions, besides cutting costs to manage the impact of rupee appreciation against the US dollar, the software giant’s chief mentor N.R. Narayana Murthy has said. "We have been enhancing contribution from Europe and other areas of the world. Now Europe forms 27 per cent of our total revenue when it was 18 per cent five years ago," he said in an interview to India Business Report on BBC World.
The US, however, remains the most significant market for the country’s second-biggest software exporter. "US is still the most dynamic market, US is the market which believes in innovation in technology, so we do not regret our dependence on that." Mr Murthy also said the appreciation in rupee value against the dollar was hurting the software companies, including Infosys. "For every drop of one rupee in exchange rate we lose as much as fifty paise or half of that in our margins," he said. The rupee has risen more than 12 per cent against the greenback since the beginning of 2007.
"We have learnt to control our costs, to improve our per capita productivity, (and) to use technology even better," he said, while admitting that the company lost its rupee guidance for the first time during the June quarter. Mr Murthy dismissed fears of any backlash against Indian firms in the US with the presidential elections approaching."We were lectured by our American friends about our opening up and we did... we have listened to their advice and we have so many American MNCs working here... So now to hear that they don’t agree with that philosophy is somewhat strange," he added.
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