Infosys CEO 'comfortable' with higher revenue growth guidance

India's second-largest IT services company Infosys is 'comfortable' with higher revenue growth guidance of 14 -- 16 per cent it gave for the full fiscal, as global IT spends are in '' good shape, according to CEO Salil Parekh on Tuesday.

Infosys' top boss told PTI in an interview that the company sees continued strength in both the US and European markets, but they are keeping a close watch on the macroeconomic environment, even though talks that the global economy may be facing an increased risk of recession.

Many analysts have flagged concerns over higher than expected inflation, and some large global tech companies are reverting to aggressive hiring plans due to concerns about a looming economic slowdown.

Parekh stated that global IT spending is in good shape and the digital focus of clients is quite strong.

He said that it is a twin engine, along with cost efficiency and automation.

Automation and cost efficiency will become more critical for companies if the global economy is facing more difficulty going forward, he reasons.

We had 21 per cent growth in Q 1 and we have raised our guidance to 14 to 16 per cent for the full year. We feel comfortable that we see this level of growth in this year. That is the kind of traction we are seeing, he said.

The July consumer spend data for the US and Europe shows year-on-year improvement, despite the fact that there is a lot of talk and inflation high in the electronics city.

These are different signals in the environment. Consumer spending is a good number, and that is one example. He said that gives you some indication of what is going on.

Parekh, dressed in a blue suit and a crisp white shirt paired with a striped tie, assured that the company is being watchful about the environment.

Parekh, 58, often referred to as mild-mannered and approachable by those who know him, has been credited with the turnaround of the Indian IT giant after the Bengaluru-headquartered company hit a rough patch a few years ago.

Parekh took over the helm in January 2018, after a public spat between the company board and founders on issues of governance. It resulted in the resignation of CEO Vishal Sikka.

Parekh has navigated challenges over the last few years and steered the company back to stability.