This excerpt taken from the INFY 6-K filed Apr 20, 2005.
I just wanted to ask you, how long, you mentioned about this Sarbanes-Oxley thing, how long do you think this will go on, this compliance thing and how long will your revenues be impacted because of the customer focus on this compliance.
Well, first of all, as you know, at Infosys, financial services is a big part of our business, you know, close to 40% of revenue today is from financial services, and lot of our customers in that area have this compliance issue. One is of course the Sarbanes Oxley Act, but specifically in
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the financial services we have other acts like the Anti-Money Laundering bill and the Patriots Act and so forth. So it is definitely a bit concern for them and that is part of the reason. The second reason we have also said is that in a large customer, we have had organizational changes, but we believe both these things are essentially not going to have a long-term impact. In fact, if you look at our guidance, we have given flat guidance for Q1, but we expect that Q2, Q3, and Q4 to do better and therefore that is why we are giving the overall guidance of 28-30% in dollar terms and therefore we think that any impact of all this is going to be purely short term and felt mainly in the first quarter.