Page 1 of 2

Companies around the world are struggling to position themselves in today’s economic environment. Bottom lines may be strong, but uncertainty about everything from the outcome of Europe’s debt crisis to the final shape of financial regulatory reform is inducing caution. Most CEOs are wary of making big investments and determined to keep a tight grip on costs.

Few corporations feel those trends more directly than Infosys. The Bangalore, India-based outfit is a leader in providing information technology services to big banks and multinational companies, a role that puts it at the heart of the global economy. Annual revenue exploded from $400 million to $7 billion over the past decade.

Lately, the pulse has slowed, though. Infosys’ high market penetration and the cagey attitude of many corporate clients — such as Bank of America Corp., which accounts for 5 percent of revenue, analysts estimate — have throttled back its once-torrid growth pace. Competition from fast-expanding rivals like Teaneck, New Jersey–based Cognizant Technology Solutions Corp. adds to the pressure.

On January 12, Infosys lowered its estimate of revenue growth for the financial year ending March 31 to 16 percent from a range of 17 to 19 percent, causing its share price to plummet 8.4 percent that day. The stock has since recovered. Infosys’ Nasdaq Stock Market–listed American depositary receipts were trading at $60.10 late last month, up from a 12-month low of $46.12 back in September but well below the peak of $77.53 set at the start of 2011.

Sarojini Damodaran Shibulal, a company veteran who stepped up to the CEO post last April after four years as COO, thinks going up-market is the way to restore growth. Under a strategic program called Building Tomorrow’s Enterprise, he’s focusing on several priority areas, from emerging markets and digitally savvy consumers to ways of using IT to lower health care costs and energy use.

Shibulal has reorganized Infosys along its four target industry sectors — financial services and insurance; energy, utilities and communications; manufacturing; and retail, consumer goods, logistics and life sciences — rather than along IT product lines. He’s ramping up a new consulting and systems integration division and seeking to promote the company’s proprietary technology, such as its Finacle IT platform for the banking industry. The aim is to make Infosys more of a technology partner to global companies — an Accenture with an Indian accent — than a mere provider of IT outsourcing services, which Shibulal fears are becoming commoditized.