The Hindu Business Line : Pricing, value differentiation to offset dollar risks: TCS chief

VALUE differentiation and pricing mechanisms are among the options that can be exercised to address concerns arising from a sinking dollar, Mr S. Ramadorai, Chief Executive Officer, Tata Consultancy Services (TCS) has said.

He told Business Line here that there are some natural techniques available to deal with the emerging situation.

One is to spread the risk through currencies operating in different geographies of the world. The euro in European Union and the yen in the Japanese market, for instance. This is as natural a hedge as is available.

Another one is taking appropriate cover to protect one's revenues. This will need to be backed up by a very prudent policy proposition, necessary checks and balances. "At TCS, we do cover some risks. We take certain forward covers as well," Mr Ramadorai said.

Going forward, the company is looking to benefit from the trend in which big-budget US companies are shifting focus from cost reduction to discretionary spend on creating new programmes, new opportunities and new business models for reaching out to customers.

The unique capabilities of TCS will help it earn a good share of the business that will be generated in the process. In this connection, Mr Ramadorai described the anti-outsourcing movements in the US as aberrations in the quest for expanding business globally.

"The domestic market also will give us an opportunity to grow, with theavailable statistics indicating focussed infrastructure spend in areas such as manufacturing, healthcare, banking, financial services, insurance and governance. All this will provide ample opportunities to us," he added.

On the need for Indian players to look beyond the US for a market, he said companies would still have to look to that country for much of their business since it continues to be the largest technology spender. But he saw the European, Japanese and the Asia-Pacific markets picking up steam in the medium to long term.

"Last but not the least, technology spend in the domestic market is also set to rise, which will open up a thriving business in our own backyard."

On mergers and acquisitions in the industry, he said growth would be both organic and inorganic.

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

Stories in this Section
AP Govt to digitise manuscripts

Telecom service quality not consistent: Gartner

HCL Peripherals to expand Pondy facility

Dealers look to sops for home PC sales

Pricing, value differentiation to offset dollar risks: TCS chief

Zensar bets big on migration services

ATSA opens chapter in Bangalore