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TCS sees rise in outsourcing demand across sectors

TCS sees rise in outsourcing demand across sectors
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First Published: Mon, Mar 07 2011. 06 17 PM IST
Updated: Mon, Mar 07 2011. 06 17 PM IST
Bangalore: Tata Consultancy Service (TCS), India’s top software services exporter, is seeing good demand for outsourcing services across sectors and expects client spends to be better in fiscal 2012, its chief executive said.
N Chandrasekaran, who is also the managing director of TCS, said IT outsourcing demand in Europe was recovering but was “slightly behind the curve”, while outlook for North America, its largest exports market, remained strong.
“What I see on the ground is the spend is increasing. Fiscal 2012 will be a better year...better for growth,” Chandrasekaran said on Monday, adding he expected pricing to move up as demand for outsourcing increases.
TCS, whose clients include Citigroup and General Electric, has not seen any business impact from the unrest in Middle East and North Africa, he said.
Chandrasekaran also said the company would recruit as many or slightly less than about 50,000 it hired in 2010.
In January 2011, TCS posted a market beating 30% rise in quarterly profit as it saw the highest client additions in seven quarters.
Demand for services offered by TCS and smaller rivals Infosys and Wipro are seen rising, but a firmer rupee, rising wages, macroeconomic uncertainties and intensifying competition from global firms such as IBM and Accenture are key risks for the sector.
In February said it expects to garner $1 billion revenue over five years by providing technology solutions to small-and-medium business units, an area where its revenue now is ‘practically negligible. ´
Shares of the company closed 2.27% lower on Monday at Rs 1108.75, in the Bombay Stock Exchange that shed 1.4%.
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First Published: Mon, Mar 07 2011. 06 17 PM IST