Indian outsourcing giant Infosys has posted year end results that show how its growth is still constrained by a lack of resources.

At least that's the story the firm gave in January, and it happens to concur with the complaints emanating from its rival multinationals on the subcontinent.

It's only a spot of indigestion, though. Growth in sales and profits at Infosys might have slowed, but the tiger's not lost its appetite.

Infosys's gross profit grew 69 per cent year-on-year as of 31 March 2007, totalling $1.3bn. Still, the 05/06 gross figure of $908m had been a yearly increase of 76 per cent.

Revenue growth showed an almost identical disparity between 05/06 and 07/08, but it still boasted sales of $3.1bn, an increase of about 69 per cent, or nearly $1bn. Ditto earnings per share, which were up 67 per cent to $1.53.

The constraint has, apparently, been a lack of graduates. Though India churns out 14 million graduates every year - twice as many as the US - not nearly enough of those trained in engineering are good enough to hit the ground running when they are employed.

And signs point to growth slowing even further. Quarter on quarter revenue growth for the last slice of Infosys' fiscal year was a less impressive 45.5 per cent. Q3 revenue growth was 35 per cent, profit was up 30 per cent.

This time next year, the firm said it expects to have grown up to 30 per cent, while bringing in almost as much profit again. ®

Related stories

• Axon tells Infosys to put up or shut up (3 October 2008)
• Infosys swoops on Axon (26 August 2008)
• China sacks officials over faked big cat snaps (30 June 2008)
• Capgemini jumps on Infosys takeover talk (29 June 2007)
• India to deploy tethered blimp radars (18 May 2007)
• Analysis Capgemini exec salaries divulged in annual report (11 May 2007)
• IT staff set for chop in Barclays-ABN Amro merger (23 April 2007)
• Work permit fears doused (15 March 2007)
• Former Wipro salesman sues for £1m in commission (9 March 2007)
• Outsourcing won't save you money (30 January 2007)
• Foreigners, geeks and teachers harm UK IT (17 November 2006)
• HCL squeezes Indian software engineers (11 October 2006)
• Multinationals test small town Indians (1 September 2006)
• Boardrooms split over offshore outsourcing (30 May 2006)
• Euro unions eye Indian closed shop (3 March 2006)
• Booming Infosys feels growing pains (11 January 2006)
• Infosys beats estimates (11 October 2005)
• Infosys reports red-hot Q4 results (14 April 2005)