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Infosys reports solid growth as customers move to fixed-priced contracts

Infosys has reported a boost in profits in its Q1 2010 results, with revenue for the quarter up 4.3% to $6.2bn. Net income after tax was $326m.

North America is still the biggest market for the Indian outsourcer. It grew its business there by over 3%, compared with the same quarter in 2009. However, its European business shrank by over 5% to $20.3bn.

The results show Infosys's application development practice declined slightly to 16.9% of total revenue compared with Q1 2009, while its application maintenance business grew just over 1.5% to 23.% of total revenue.

Consulting and package implementation services remain the biggest area of the company's business, contributing just under 25% of total revenue. The fixed-price contracts business grew 2.2%, at the expense of time-and-materials-style contracts.

"While the global economic environment remains uncertain, we continue to see greater demand for services from our clients," said S Gopalakrishnan, CEO and managing director. "The challenge for the industry is to enhance the investment to grow the business, given the uncertainty in the environment."

The company recently announced a social media service


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