BANGALORE Jan 17 HCL Technologies,
India's fourth-largest software services provider, beat
estimates with a 68.4 percent jump in quarterly profits joining
Infosys and Tata Consultancy Services in
signalling an outsourcing pickup.
Consolidated net profit for the fiscal second quarter that
ended Dec. 31 rose to 9.65 billion rupees ($176 million) from
5.73 billion rupees for the year-earlier period. Analysts were
expecting profit to rise to 8.26 billion rupees, according to
the latest Thomson Reuters data.
Investors were hoping a strong show by the top companies in
India's $100 billion-a-year outsourcing industry would be an
early sign of a broader pickup in outsourcing spending.
Research firm Gartner expects IT services spending to grow
5.2 percent to $927 billion in 2013, compared with growth of 1.8
percent in 2012.
Economic uncertainty had led to concerns that clients in the
United States and Europe, the IT industry's biggest markets,
will continue to hold back spending.
The World Bank on Tuesday cut its estimate for global
economic growth in 2013 to 2.4 percent from its 3 percent
estimate in June, citing slow recovery in developed countries.
Infosys, India's No. 2 software services provider, on Jan.
11 beat expectations for the December quarter and unexpectedly
raised its dollar-terms revenue forecast for the fiscal year
ending March 31. Tata Consultancy also beat forecasts, on Dec.
14, and said it was "very confident" heading into the new year.
Third-ranked Wipro reports its earnings on Friday.