Indian multinational technology corporation Infosys on Wednesday
reported a 20.6% rise in quarterly net profits in the July-September quarter due to a surge in demand for
digital services from its Western clients during the pandemic, as per AFP
report.

The Bangalore-based firm posted a net profit of Rs 48.45
billion rupees ($661.34 million) for the quarter that ended on September 30.
The firm witnessed a rise in profits from 40.19 billion in the previous year to
Rs 48.45 billion rupees.

India’s IT outsourcing company has been a rare source of comfort in
an economy plagued by the COVID-19 pandemic, reported AFP.

Also Read: Fiscal buffers over medium to long term need to be rebuild: IMF

Both Infosys and Tata Consultancy Services are offering
salary hikes as the country struggle with prolonged economic slowdown and rising
unemployment.

Chief operating officer Pravin Rao, in a statement said,
“The strength and resilience of Infosys was fully visible in Q2 with
operating metrics witnessing a healthy increase.”

He added, “Employees have been a critical part of our
success” and stated that raises will be awarded to staff and they
will also be entitled to a performance-based bonus.

Quarterly revenue of the tech conglomerate rose to Rs 245.70
billion from Rs 226.29 billion last year. Infosys is India’s
second-largest IT company.

The company was at the forefront of an outsourcing boom that
saw the country become a back office to the world, as Western firms
subcontracted work to a skilled English-speaking workforce.

Over 60% of Infosys revenue comes from North American
markets, as per an AFP report.

Also Read: IMF warns of slow recovery of global economy, long climb out of recession

Competitor TCS, however, reported a slump in its net profits
last week. The company also set aside 12.18 billion rupees for damages in US litigation and
announced a $2.18 billion share buyback plan.

Infosys shares were down over 2% in Mumbai before the quarterly profits were declared.