Infosys Technologies (NASDAQ:INFY) has added about $1 billion in revenues each year since 2004. Management thinks it can crank out another billion over the next year, for a total of $4 billion. As India's second-largest information-technology (IT) consulting firm, Infosys is a main beneficiary of the global trend toward IT outsourcing.

Fiscal fourth-quarter revenues spiked 46% to $863 million. The company added 34 customers in the quarter, bringing its total client count to roughly 500. That group includes major players like Goldman Sachs (NYSE:GS) and J.C. Penney (NYSE:JCP).

It's not all smooth sailing for Infosys: The value of the rupee continues to strengthen, and India faces 12% to 15% inflation in wage rates. Nonetheless, Infosys posted a 70% increase in net income, to $259 million, in the fiscal fourth quarter. It's helped to preserve those earnings by moving its campuses outside major cities like Mumbai and Delhi. In these new locations, wage inflation is more moderate, and workers change jobs less frequently.

If the conference call is any indication, customer demand for Infosys remains brisk. Going forward, the company expects revenue growth of 28% to 30% in fiscal 2008, accompanied by earnings growth of 25.7% to 27.7%. Fools should further remember that the company has a history of overly conservative estimates.

As at other Indian IT giants like Wipro (NYSE:WIT), and Satyam (NYSE:SAY), Infosys's valuations are frothy -- it's selling at 41 times earnings and 10 times revenues. Nonetheless, the company has a well-developed infrastructure, a strong reputation for execution, and major long-term contracts. Those impressive qualities don't usually come cheap on Wall Street.

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Fool contributor Tom Taulli, author of The Complete M&A Handbook, does not own shares mentioned in this article. He is currently ranked 2,719 out of 25,386 in CAPS.