On Tuesday, India's second-largest information technology firm, Infosys Technologies (NASDAQ:INFY), reported its first-quarter results. There were increases across the board.

Revenue surged to 3.7 billion rupees, up 25.1% year over year, while net profits increased 34.5% to 1 billion rupees. For investors who prefer their results in dollar terms, that's quarterly revenue of $928 million and profit of $263 million -- increases of 40.1% and 51.2%, respectively.

The performance is impressive when you consider that the rupee spiked 7% in the quarter. Other performance issues included wage pressures and higher expenses for U.S. visa applications. Despite these negatives, Infosys wants to get even bigger. The company plans to hire about 26,000 employees this year. Clearly, Infosys believes that the demand for IT outsourcing services will continue its rapid growth.

Infosys added 35 new customers in the quarter, bringing the total to 509. There are now 113 $5 million-plus customers, including one in excess of $200 million. Some of Infosys' marquee customers include Goldman Sachs (NYSE:GS), Boeing (NYSE:BA), and J.C. Penney (NYSE:JCP).

Infosys has been able to pass along higher prices on its contracts, wring out more operating efficiencies, and improve utilization. With $1.6 billion in the bank, it looks as though it may be ready for some acquisitions. "We think there could be a deal in the U.K. or continental Europe," Michael Guilbault, the senior analyst for professional services at Technology Business Research, told the Fool. "We believe Infosys is in advanced talks regarding at least one acquisition in Europe: SmartStream Technologies, a financial services solutions provider in the United Kingdom."

So far this year, Infosys' stock price has been lackluster, which has also been the story with fellow Indian IT operator Wipro (NYSE:WIT). But if there is moderation in the rupee and Infosys continues to get traction with major contracts, the rut may end soon.

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Bill Mann, lead analyst for the Motley Fool Global Gains international newsletter service, recently returned from a trip to India and China in search of market-beating investments. To find out what Asian stocks Bill and his team are high on, check out an all-access 30-day free trial to Global Gains today.

Fool contributor Tom Taulli, author of The Complete M&A Handbook, does not own shares mentioned in this article. He is ranked 2,478 out of more than 60,000 investors in Motley Fool CAPS. The Motley Fool has a disclosure policy.