TCS to focus on growth; may look at acquisitions overseas: CEO

TCS to focus on growth; may look at acquisitions overseas: CEO
PTI
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First Published: Tue, Oct 06 2009. 06 57 PM IST
Updated: Tue, Oct 06 2009. 06 57 PM IST
Mumbai: IT-major Tata Consultancy Services (TCS) would focus on growth by leveraging its potentials and may look at acquisitions in overseas markets to build up capabilities, its CEO said on Tuesday.
“If at all we have to increase the pace of growth, we will have to leverage much stronger... we will grow our organic growth potential. For that we will have to do acquisitions to build-up capabilities,” N Chandrasekaran, its new CEO, told reporters here.
He cited Europe and Japan as geographies for possible acquisitions but said the company would not go for any acquisitions “in terms of buying revenue.”
The company’s focus would be mainly on leveraging its tools on the back of strong organic growth. It would work on delivering performance, which would translate to better shareholder values, Chandrasekharan said.
“A major task is to leverage our potentials... we will certainly leverage our full service offerings and go for larger deals, where we can help out clients,” he said.
The $6 billion IT major, which has 1.4 lakh employees, is listed on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE).
Chandrasekaran, who took over as TCS’s new CEO on Tuesday, succeeds S Ramadorai. Ramadorai will continue with the firm as a non-executive vice-chairman.
Chandrasekaran said that emerging markets continue to be major focus areas for the company and TCS would continue to invest in these markets to grow operations.
Though the global financial meltdown affected the performance of key sectors in India, these sectors have started recovering slowly, Chandrasekaran said.
“There is a slow recovery, but definitely the recovery is happening,” he said, adding, the pace of recovery was slow in sectors like manufacturing and auto.
On taking over from Ramadorai, Chandrasekaran said that “I take over at a time when Ramadorai has ensured a strong position for TCS as a $6 billion company and a global IT services powerhouse.”
“With our strong customer base, full services offering, multi-domain capability and presence across emerging markets, I believe that we are optimally positioned to take advantage of the opportunity in the global market. It is important to drive excellence and growth through empowerment of our 1,40,000 strong employee base and value articulation for our global customers,” he said.
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First Published: Tue, Oct 06 2009. 06 57 PM IST