Outsourcing spells big profits for Infosys

The company said net profits for the second quarter came in at 4.5 billion rupees ($97.1m;�54m), a 49% increase on the same period last year.

Sales also rose, climbing 52% on the year to 17.5 billion rupees.

Chief executive Nandan Nilekani said the firm had benefited from a "mega-trend" towards outsourcing.

Offshore

Outsourcing - where firms contract out functions such as computer support to outside companies - has become an increasingly popular way for major multinationals to keep costs under control.

Indian companies - drawing on a highly-educated and comparatively cheap labour force - have become the chief beneficiaries of the trend.

Infosys, which exports software as well as offering outsourcing services, said it had signed up 32 new customers during the second quarter.

Chief operating officer Kris Gopalakrishnan said public controversy in the US over the jobs impact of outsourcing appeared to have faded.

"It seems to be behind us," he told the Reuters news agency.

"There seems to be less concerns coming close to the (US Presidential) elections."

Infosys said it now expected to make full-year profits of 71.3 - 71.6 billion rupees, up from its previous forecast of 67.3 - 67.7 rupees.

It added that it had taken on 5,010 new employees over the second quarter, lifting its total workforce to 32,949.