Biz visibility is challenging: N Chandrasekaran, CEO, TCS
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Biz visibility is challenging: N Chandrasekaran, CEO, TCS
Mumbai: IT giant Tata Consultancy Services (TCS) has reported a better-than-expected second quarter results and its CEO and MD, N Chandrasekaran, is certain that there will be growth in the next quarter as well. Chandrasekaran said the biggest difference from the last quarter to the current quarter was the certainty of growth. "Last quarter, if had you asked me what to expect, I couldn't have told you whether it would be growth or negative growth. Now I can tell you, it is growth," he said to Economic Times. Chandrasekaran says that both growth and margin are important factors for a company. "Fundamentally, our focus is to create a model that is very efficient. I can never answer a question on whether growth is important or margin is important. Growth gives us the energy to do more things, so it is fundamental. Margins and profits give us the ability to expand the business and make investments. We will definitely continue focusing on margins," he added. Speaking about the Indian IT industry he said that, "India is going to be volatile for some time because of the mix of the business in terms of annuity and discretionary projects. Domestic revenues have been hovering around 8-10 percent and it will stay there for the time being." Chandrasekaran believes that all companies will have to deploy different strategy and only time will tell which strategy will work. "All the top three Indian IT companies will evolve differently. Each one has to take bet on which businesses to go for and they are doing it, although it is not very visible from the numbers. But three years from now, their revenues will come from these streams and time will tell which strategic move was the right one," he added. Some analysts have raised concerns that consolidation among clients could lead to lower IT spending, but Chandrasekaran admitted there could be some rationalisation in IT spends, saying, there would also be new opportunities. "The overall IT spend will still be high. When a company has acquired, they have added new businesses or new markets. These have to be serviced," he said.

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