Infosys raises FY21 forecast as digital service biz booms

Infosys Ltd on Wednesday raised its annual revenue growth forecast on continued strength in its digital services business as clients, buffeted by the coronavirus pandemic, digitize their processes to save costs.

India’s second-largest software services company raised its revenue growth guidance to 2-3% for the year to 31 March from the earlier 0-2% in constant-currency terms. On Tuesday, rival Wipro Ltd, too, had forecast revenue to grow as much as 3.5% in the fiscal third quarter.

“Clients have embarked on a digital transformation journey with a lot of focus on cost optimization, automation and, in some cases, consolidation of vendors,” said Salil Parekh, chief executive and managing director of Infosys.