Economic environment challenging though recovery on track: Infosys

Though pricing pressure has eased, Infosys said the business environment continues to be challenging and clients are cautious in spending.

"The situation is still quite challenging," said Infosys COO S.D. Shibulal on the sidelines of inaugurating a new center in Mysore. "If you look at our customers, they are not really seeing any increase on their revenue side. And because they are not seeing any increase on their revenue side, they will continue to be concerned."

Though most negotiations with clients on price cuts was over and the company was not seeing a second round of such talks, yet, large deal flows were still to flow in, Shibulal said.

"Overall, deals above $500 million which used to be there before the downturn, they have not reappeared in significant manner," he said.

The last major order Infosys bagged was from oil and gas major BP Plc. The IT services contract bagged last month was worth $116 million over five years, Shibulal said.