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TCS sees rise in 'discretionary spending'
Tata Consultancy Services, India's top software services exporter, expects "discretionary spending" by overseas clients to rise from April, its chief executive said on Wednesday.
Tata Consultancy Services , India's top software services exporter, expects "discretionary spending" by overseas clients to rise from April, its chief executive said on Wednesday.
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.
"Discretionary spending budget is also getting decided," N. Chandrasekaran told reporters at the sidelines of a software industry conference here. "I think it should pick up momentum in the next fiscal year, early next fiscal year."
TCS and No. 2 exporter Infosys Ltd. are part of India's showpiece outsourcing industry that is forecast to see its revenue rising to USD 225 billion by 2020, from an estimated USD 101 billion for this fiscal year ending on March 31.
TCS, part of India's diversified Tata conglomerate, posted a 23% rise in its fiscal third quarter net profit last month, and said the company had an order pipeline that is "very healthy" across sectors.
"On the ground we see stability. In terms of deal closures, there is no delay," Chandrasekaran said, responding to queries on the possible impact of the euro zone sovereign debt crisis on demand for outsourcing services.
"We see a healthy deal pipeline," he said. "(But), we have to still worry about the macro because macro has this habit of throwing a surprise."
