Infosys is targeting a move into the UK public sector market, according to BG Srinivas, European head of the Indian outsourcing giant.

Srinivas told ComputerworldUK that the drive into the public sector would begin in the US, before Infosys began looking for opportunities in the UK. Public spending cuts and the 20 percent price cuts that the Cabinet Office demanded from its incumbent suppliers were not a deterrent, he said.

Spending cuts meant global sourcing was more necessary than ever, said Srinavas, who said Infosys would gain traction in the market “without reducing it s rate card”.

Infosys expects to bid for public sector work directly and, on larger contracts, as part of a consortium.

The company will maintain its core focus on retail, consumer packaged goods, financial services and telecoms, said Srinavas, adding that it was using retail platforms developed in the UK to win contracts elsewhere in Europe. Infosys was though a key supplier to Waitrose on a £10 million project to build a new website that suffered major probelms when it went live in March.

Infosys today reported revenue for the quarter to 30 June of $1.7 billion (£1 billion), up by 23 percent from the same quarter last year. Net profit was up 17.8 percent at $384 million (£242 million).

The company is aiming to shift its focus from a traditional "time and materials" model, under which contracts are priced on the basis of the duration of a project and the number of staff working on it, to a products and platforms business.