The Hindu Business Line : TCS sees no slowdown in IT spend in US

There is no indication of any slowdown in investment in information technology by companies either in the US or in Europe and there are indications of increase in spending in new programmes, according to a senior executive of TCS.

The company was also pursuing several mega size contracts, some of which are in final stages of negotiation, he said.

Speaking at an analysts/investors conference call after the Q2 results for the current fiscal were released, Mr N. Chandrasekaran, Executive Vice-President and Head of Global Sales & Operation, TCS, said that `contrary to some of the slowdown news, what we hear from the CIOs is that the spend on the programs is increasing in addition to the support'. As a result, there was a huge `demand environment' and the company was looking at 3-5 per cent increase in contract prices for renewals and the increase in new contracts ranged from 5-10 per cent, he said.

Asked about the large deals in the pipeline, he said the company was negotiating at least five contracts of $50 million plus that were in the final stages of negotiations. There were at least five other contracts of $100 million plus that were in the `pursuit stage'.

Mr S. Ramadorai, CEO and MD, TCS, said the company's international business was growing at 50.5 per cent year-on-year and by 10.8 per cent quarter-on-quarter. At the operating income level, TCS had an increase of 300 basis points.

He said the company was aiming for a $4 billion turnover during this year.

Mr S. Mahalingam, Chief Financial Officer, said the international revenue was over 90 per cent of overall revenue. He said shift in offshore revenue, leveraging its cost base and pricing have resulted in significant improvement in operating margin in the second quarter of this year. He put the capex for the full year at Rs 1,250 crore.

He said the TCS board had not yet considered the question of listing the shares abroad.

Mr S. Padmanabhan, Executive Vice-President and Head of Global Human Resources, said the attrition rate stood at 10.6 per cent at the end of last quarter, same as at the end of the previous quarter.

More Stories on : Software | Outlook | Tata Consultancy Services Ltd

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Rainy days forecast for southern peninsula

At 5, iconic iPod rules music player world

US Court denies review of Ranbaxy's plea on patent

A.K. Antony inducted as Defence Minister

Indian tea fails to make most of Kenyan drought

ICICI Bank Q2 net rises 30 pc

2-wheeler biggies to drive into `bike club'

TCS sees no slowdown in IT spend in US

No middlemen to be allowed in defence deals: Pranab

TRAI for overhaul of spectrum management

Exports in September up 41 pc