Infosys Technologies Ltd., India's bellwether information technology outsourcing company, said quarterly profit was short of expectations as the economic recovery in developed nations slowed.

Net profit rose 14.2 percent to 17.8 billion rupees ($396 million) for the October-December period from 15.6 billion rupees a year earlier, the company said Thursday.

"The weaker economic recovery in developed markets coupled with high unemployment and risk of sovereign default could impact industry growth," said S. Gopalakrishnan, CEO and Managing Director. "We are closely working with our clients as they fine tune their strategies for the future."

The Press Trust of India news agency said the profit growth was below market expectations of 16 to 17 percent.

Shares of the country's second-largest software exporter dropped by 4.8 percent on the Bombay Stock Exchange.

The Bangalore-based software services giant said it added 40 clients during its fiscal third quarter.

The company expects revenue this fiscal year ending March to grow between 25.7 percent and 26.1 percent in dollar terms to between $6.04 billion and $6.06 billion.

Infosys added a net 5,311 employees during the quarter, bringing its headcount to 127,779 at Dec.31, the statement said.