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Our Bureau

New Delhi, Aug.18 The IT industry is set to continue suffering the effects of the slowdown. Infosys’ Senior Vice-President, Mr Subhash Dhar, told reporters on Tuesday that prices aren’t going to increase in the short term. “Volumes will increase after a quarter or two. Prices will not improve in the short-term. The only good news is that there is no more negative news,” he said.

He said volumes might increase after January if companies come out with more relaxed IT budgets. “Our clients say that by next year or so, things should improve. But in the industry, the order uptake hasn’t taken off as yet.”

Mr Dhar added that strong first quarter results reflected cost cutting measures rather than pricing improvement.

However, on a brighter note, he said, “Infosys, in the first quarter itself, has already booked the entire value of billing in the last fiscal.”

Regarding Infosys’ New Engagement Model, he said that 12-14 clients had already adopted the model while negotiations are still going on. Mr Dhar described the model as “next generation” and said the company’s initial goal is to make sure 5-10 per cent of the revenues come from the New Engagement Model.

More Stories on : Software | Infosys Technologies Ltd

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