India’s largest software services exporter Tata Consultancy Services (TCS) on Wednesday said that even though two-thirds of its clients have increased their budget for infotech, or kept it unchanged for 2012, it preferred to stay cautious given the gloomy outlook in the euro zone.
“Pricing is more of a sentiment thing, so despite a majority of our clients increasing or maintaining their IT budgets for the coming year, there won’t be any rise in pricing from our side as we need to take into account their sentiment,” N Chandrasekaran, CEO, TCS, told Hindustan Times.
A direct fallout of this approach will be that the firm will not be able to dole out generous increments to its staff this year, Chadrasekharan said. “Based on current market conditions, the raise for our employees is likely to be in single digits this year,” he said. “It certainly won’t be as high as the 12-14% hikeslast year.”
The company has also reduced its campus recruitment for 2012-13 to 43,600 from 45,000 earlier announced.
TCS expects to win more $100 million-plus deals in the coming quarter. It has so far bagged 14 such deals in the current financial year, though it has been seeing delays in closing deals.
“We have been closing deals at the ground level and have a healthy pipeline despite the worrisome macro-economic factors,” Chandrasekaran said.
“It’s is not surprising that there have been big wins in Europe because all companies globally are operating under this climate of macro uncertainties and are charting their plans in that context and sticking to that plan,” he added.