Indian IT to face competition from other countries
By siliconindia   |   Tuesday, 06 July 2010, 15:15 IST   |    8 Comments
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Indian IT to face competition from other countries
Mumbai: In the 15th annual general meeting of the Tata Consultancy Services, Ratan Tata revealed the fact that the Indian IT industry will face tough competition from countries like China, Philippines and Vietnam and will require improving its value chain. Tata said that, "India's space in the IT sector will be challenged by other countries. That would, in turn, impact margins of the company as well as others. However, TCS has made the greatest stride in moving up the value chain in the last few years," Tata had gained a revenue of 8 percent 33 percent in net profits in the FY 2010 by providing services like business process outsourcing and working closer with business partners. N Chandrasekaran CEO and Managing Director TCS said, though the global the global economy is on the verge of recovery, "recovery in Europe is slower than the U.S. To add to it, the currency fluctuation has brought down the share of Europe's revenue from 30 to 20 per cent. However, the currency is now stabilising. From an economy point of view, we have not seen any major significant impact," The shareholders question at AGM about the high salary compensations to the top management in TCS was answered when it was mentioned that in TCS the senior executives receive a compensation of 20 to 55 percent as they do not get the option of stock unlike other companies. On the shareholders demand to keep Tata on board, Tata remarked that, "All of us are human and we must move on and give others a chance." According to Tata's contract the age limit for retirement of non-executive board members is 75 and Executive Directors and CEOs are 65 years. Tata stated that, the ePassport project is a complicated project which has established four centres and 73 more would be set up soon.

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