Infosys Says It is Not Seeing Any Pricing Pressure

In the second half of the Wednesday’s trading session, the IT stocks started tumbling as investors worried about the profitability of the IT companies. The news came in as the clients in IT industry asked companies to take price cuts of around 20 to 30%.
 
Infosys, however, said that the company was not seeing any pricing pressure and released the following media statement: 
 
“Infosys would like to clarify that the news reports on pricing cuts seen by the IT industry being attributed to the Infosys COO are incorrect. His comments have been misrepresented".

Infosys also said that if there really was some issue with pricing pressure, then it would have reflected more acutely in the margins.
 
The comments being referred to in the interview refer to cost take out efforts by clients towards reducing their program investments in the ‘run’ side of business, to reinvest them in latest technologies or the ‘change’ side of business. There are enough levers available to meet the client demand on cost take-outs without necessarily impacting the pricing as cost take outs by clients do not necessarily translate into an impact on vendor pricing.