PwC: Where are you investing for growth?

Gopalakrishnan: We are proactively investing in non—U.S. markets from a market-facing standpoint and also focusing on other fast—growing markets. India is growing but still not large enough and thus not a Number 1 priority market for us. Of course, a mid—tier company´s perspective will be different from Infosys´s.

PwC: What are the implications for software providers´ business models as customers increasingly adopt cloud services?

Gopalakrishnan: For established software companies, the biggest disruption would be moving to newer engagement models based on technologies like cloud computing while sustaining growth and margins. For example, if a product company has to move to cloud, its revenues will collapse before they rise again, because the product company currently operates in the capex [capital expenses] revenue cycle and shifting to the cloud would mean an opex [operating expense] cycle. New companies will not see a collapse in revenues and thus would do better.