Infosys BPO to hire 8,000; sees 18-20% growth in FY-12

BANGALORE: The back-office processing arm of India's No.2 software firm, Infosys Technologies Ltd , expects revenue growth of 18-20 percent in the financial year that begins in April, its chief said on Friday.

D. Swaminathan, chief executive and managing director of Infosys BPO , said he expects operating margins of 20 to 22 percent in fiscal 2012.

The company will also hire 8,000 staff, he said on the sidelines of a conference, adding that he expects attrition to stabilize to 25-30 percent in the next fiscal.

India, which was the pioneer of the BPO revolution two decades ago, still dominates the industry with around 40% of the offshore BPO market. Nasscom estimates that Indian BPO exports will grow by 14% to reach $14.1 billion this fiscal. However, the Philippines today leads in the voice segment.

The domestic BPO segment is seen to grow by 16.9 % in FY 2011 to reach Rs 127 billion.

Driven by higher IT needs in banks, telecom, education, healthcare and public sector, domestic IT demand is likely to grow almost three times faster than the global IT demand. While global IT spend is expected to grow at 5.5- 6 % in FY 2011, the domestic spend is likely to grow at 15- 16 % during FY 2011 as against FY 2010.