Current fiscal to see improved IT spends: TCS

08 Mar 2011

Tata Consultancy Services (TCS), the country's largest information technology services exporter, said it expected better IT spends in the current financial year, backed by higher demand for outsourcing services across markets.

The company expects the market to be largely driven by North American clients, while Europe is recovering gradually.

N Chandrasekaran, chief executive of TCS, told the media in Bangalore on Monday, ''The demand pipeline is looking good. In FY12, client spend is expected to be better than the last fiscal. Today, the situation is much better compared to what it was last year. There is lot more clarity this time.''

He noted that the company is seeing good traction in all markets. ''Europe is recovering but is slightly behind the curve. North America remains strong,'' he said.

TCS is also optimistic of the pricing scenario in the next fiscal year that begins in April 2011. Chandrasekaran said that the pricing will go up as demand continues to improve. ''In the third quarter, we saw an improvement in pricing and expect it to continue,'' he said.

During third quarter ended December, TCS's volume grew 5.7 per cent quarter-on-quarter, while pricing improved by 1.18 per cent.