Infosys, India's second-largest software exporter, raised its annual sales growth forecast for the second consecutive quarter as economic recovery prompts clients in Europe to spend more.

Revenue in dollar terms will increase by between 11.5 per cent and 12 per cent in the year ending March 31st, Infosys said. That compares with its October forecast for growth of 9 per cent to 10 per cent. The software provider joins Accenture in posting better-than-estimated earnings, signalling outsourcing demand has gathered momentum as Europe recovers from its debt crisis and the US resolves budget negotiations.

Worldwide spending on information technology is projected to grow 3.1 per cent to $3.8 trillion in 2014, with IT services set to increase 4.5 per cent, researcher Gartner has forecast. – (Bloomberg)