Infosys Technologies (INFY)

Ajay Diwan – Seligman - Analyst

Thank you. I wanted to understand the slowdown that you saw in Q4 and your guidance for Q1 a little bit better. I think you’ve mentioned compliance issues. But I just find it — I’m trying to understand why they would materialize so suddenly, given that if you’re talking Sar-Box, that’s been an issue that’s been going on for a while. And if you’re talking about other compliance issues, whatever money laundering or whatever that is, these things have been around for a while, so why would it suddenly show up at this point?

And I think you also alluded to some kind of reorganization within some of your customers that might have resulted in the slowdown. So can you maybe give us some better color as to the magnitude of both of those factors?

Basab Pradhan

So some of this is timing of course, and some of this is material to our situation. We have a fairly decent concentration amongst our large clients, and the top 5 clients they contribute something like 21% of our revenue. And with that kind of concentration when we have, even a delayed response to Sar-Box, or a reorg that happened in two of those top five, then you have a problem. So it is not really related to a market trend, and it is not something we expect to continue, but this what caused our guidance in Q1 to be where it is. So it’s a matter really of the accounts that are in the top 5 and top 10 and what happened there, and the reasons that we can attribute those accounts performance in last quarter and this quarter are these two reasons. Basically compliance related, slow down the IT spend and certain reorgs which led to a cessation on new project creations.