Situation to take time to improve, deal demand strong: TCS

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Situation to take time to improve, deal demand strong: TCS

Noose around the IT companies is just getting tighter with almost no solution to the European debt crisis. Companies like TCS and Infosys are trying their best to get the clienteles intact and more deals coming in even in an adverse situation.

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Excerpts from Markets Midday on CNBC-TV18 Watch the full show » ALSO READ See latest News about TCS See previous management interviews See what other Experts & Brokerages are saying about TCS TCS BSE | NSE 29/05/12 Are Mutual Funds betting on TCS?

Noose around the IT companies is just getting tighter with almost no solution to the European debt crisis. Companies like TCS and Infosys are trying their best to get their foreign clienteles intact and more deals coming in an adverse situation.

However, it is some more time that these IT companies, whch bank heavily on foreign clients, will breathe a sigh of relief. S Mahalingam, CFO, TCS feels that the tough economy situation will take time to improve. .

In an interview to CNBC-TV18, he said, "I think the economic situation will take some time to improve. I don't think we can expect a quick fix at this time. If we focus on our fundamentals which is really to deliver higher value to the customer for the amount of money that they have spend on us we should be doing very well in this current environment because value management, cost management are top priorities for customers and we are seeing this right across whether it is in the United States or Europe and so on."

A confident Mahalingam said that deal pipeline continues to be strong.

However, customers are cautious and evaluate discretionary spend, he quickly pointed out.

The IT company is expecting discretionary spending by overseas clients to rise from April. Discretionary spending refers to technology programmes and applications that are desirable for global companies but not critical for businesses to carry on. Spending on such projects is often viewed as an indicator of the sector's health.