However, Infosys chairman KV Kamath told NDTV that nobody should get impatient about any company in the short term.
"Globally, the IT business is going through a metamorphosis and we need to understand its dimension and impact. All these companies are good companies led by smart people and they will find solutions to this change," Kamath told NDTV.
Infosys, once considered to be the industry bellwether because of its ability to achieve and usually exceed dollar revenue forecasts, has had to cut its outlook in view of the increasing global uncertainty. The company has also stopped giving out quarterly guidance.
When asked about the company missing its guidance and losing to TCS, Kamath said, "Guidance is given on your perception of the world and the guidance Infosys has given is on its perception of the world."
Indian IT companies have come under pressure as clients have cut back on discretionary spending. This seems to have hit Infosys the most, which had more high-margin offerings such as ERP implementation and consulting. Pricing has also come under pressure.
Infosys, in the past, has acknowledged that clients are taking longer to negotiate deals and ramp-ups are not happening quickly as in the past. Kamath, too, acknowledged that the world order was changing.
"The way business was done is changing because CEOs and CFOs are taking charge of IT globally because they think things can be done better at a lower cost... Clients are asking how they can do business in the new world which puts pressure on the pricing...," he said.
While most analysts agree that the global environment had changed drastically, there have been questions about Infosys’ adaptability. There is a perception that the company’s' peers like TCS and HCL Tech have been able to perform in the deteriorating environment.
Infosys will take some time to adjust to the new environment, but will bounce back, Kamath said.
"Infosys has said that that is the field we are going to play in - the whole paradigm shift rush is 6-9 months old so for you to take momentum is going to take time," Kamath said.