The IT services market is levelling off after a strong recovery and Infosys' financial results for its latest quarter show continued high growth compared to the same period last year.
Sales for the fourth quarter of Infosys' financial year were $1.6bn, which is almost 24% higher than the same period last year and about 1% higher than the third quarter.
In the previous quarter Infosys reported a 29% increase in sales compared to the third quarter a year before and a 6% compared to the previous quarter.
After the recovery compared to last year business is becoming stable after the volatility during the economic turmoil of recent years.
Profit figures show a similar trend. Infosys' profit for the quarter was $402m which was about 19% higher than the same period last year and 1.3% higher than the previous quarter.
Infosys' European head BG Srinivas said demand is stabilising in Europe and the US although there are some concerns in Europe as a result of governments tightening their belts and uncertain bank spending.
"In mature markets clients are showing a fair degree of stability," added Srinivas.
He said the company is confident the next full year will see sales growth of between 18% and 20%. The last year grew almost 26% compared to the previous year.
Infosys added 34 new customers globally, nine of which were in Europe. The 34 clients, which were almost all large enterprises, included eight from the manufacturing sector, six from financial services and three telcos.
Srinivas said there are broadly two types of investments dominating at the moment. These include spending on operations such as simplifying processes and IT. Customers are also spending on transformations as they recover from the slowdown. These include business analytics and customer facing applications.
He said Infosys is heavily focused on the cloud going forward. "Most clients are evaluating it now and although it is too early to say how much will go into the cloud it is the way clients are moving."
He believes there is still work to do to get the technology, commercial models, hardware infrastructures, and legal frameworks right.
"The technology is not fully ready but is getting there. The way it is licensed is not ready. Clients are currently getting hardware infrastructures ready and legal and commercial frameworks need to be established because cloud computing is about partnerships."
Infosys is India's second largest IT services firm with 130,820 employees. A massive 75% of its staff are based in India, 15% are in the UK and US with 60% of these in the US and 10 are in emerging economies such as China and Latin America.