The Union Budget needs to focus on ease of doing business, says TCS CEO N Chandrasekaran, who is confident of beating the NASSCOM’s FY16 guidance of 12-14 percent.
NASSCOM on Tuesday said it expects revenues for the IT sector to grow at 13 percent this fiscal year. The revenue growth rate target stands at 13.1 percent in constant currency terms and 13.9 percent in rupee terms, the industry body said. For FY16, it expects IT services to grow in the 12-14 percent range.
In an interview to CNBC-TV18’s Kritika Saxena, Chandrasekaran said the company has been seeing growth across markets and will be able to beat 13.1 percent growth guidance for FY15. He feels the government’s push to digital will boost revenues.
Below is the transcript of the interview
Q: On digital growth...
A: I said in the last analyst call that overall I think there is a good momentum. Customers are very positive about this calendar year and fiscal year primarily because they want to spend money on digital. So we see that happening but how it will pan out from a yearly performance, I will wait till I make a statement.Q: We have discussed this in your earnings interview as well, we started the year very bullish, things have changed, with currency with some specific geographies looking different now, things have changed in terms of momentum, going ahead what are the concerned areas for you, is it largely Europe where we are seeing a certain amount of friction because that is what NASSCOM seem to suggest and vertical wise where are the areas where you are seeing concerns?A: Geographywise we said that we are looking good in all markets especially Europe is definitely doing well, there is no issue on Europe. From a vertical perspective we highlighted two verticals -- insurance because of our Diligenta business and then the energy business because of the oil situation. So these are the two headwinds we see otherwise, the momentum is quite good.Q: In terms of cost consolidation, are individual clients cutting cost in that case because if the trend across geographies seems steady, are individual clients cutting costs and shifting towards digital? If yes, when will that shift be completed?A: You cannot generalize anything because digitalization is on the agenda for everybody, there are customers who are investing heavily in digital. At the same time, everyone is trying to drive efficiency in the existing portfolio whether it is in infrastructure space or in the legacy application space. So that they can invest that money in digital, I think digital can definitely gaining momentum, gaining scale, we only need to give it a little bit more time but overall I think that the momentum is very high both from efficiency drive point of view as well as from the digital point of view and in certain sectors like financial services, there is also a big spend going towards compliance and risk management and regulatory issues.
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