TCS looks for strong FY15 after poll verdict
Tata Consultancy Services on Saturday said it is looking at a strong show in FY'15 supported by global economic revival, and hopes of pick up in India business on account of the decisive mandate in elections.business Updated: May 17, 2014 23:20 IST
Tata Consultancy Services on Saturday said it is looking at a strong show in FY'15 supported by global economic revival, and hopes of pick up in India business on account of the decisive mandate in elections.
"From an economic perspective, we are seeing a revival in every part of the world, that's a big positive from our point of view," TCS CEO & MD N Chandrasekaran told reporters in Bangalore.
He said: "If you look at there are two important things that are happening because of economic revival.
First, it is continued focus on driving efficiency by companies transforming investments in IT to a state of preparedness for the future; second, is the adoption of digital technologies in a big way."
TCS in mid-April posted a 48.2% jump in net profit at Rs 5,358 crore for the fourth quarter of 2013-14 fiscal and sounded optimistic that it would do better this year.
Stating that from a specific market point of view the US continues to be very attractive, Chandrasekaran said, "It continues to adopt technologies and the economic recovery is faster; Europe- definitely is doing well and we witnessed significant growth all through last year and we expect it to continue this year also.Our acquisition in France also is driving growth."
"Third market where I would like to make a statement is Japan, we did a strategic transaction in April and that is definitely going to drive new opportunities for TCS. So, we are very bullish about Asia as well," he said, adding, all these markets are driving growth apart from Latin America and Middle East Africa.
Reminding that he had earlier stated that India will be soft till the completion of elections, Chandrasekaran said "We have got a historic mandate yesterday, a very decisive strong mandate, I'm extremely positive that things will pick up in India much sooner with this results,".
He said: "I expect that the new government will adopt technology very significantly....our nation will adopt digital technology much more than ever before so I expect lot of growth, but these are early days so we should wait for some time for the new government to be formed."
Rewriting history, Narendra Modi yesterday stormed to power at the Centre with a "triple century", putting the NDA on course for about 335 seats in the Lok Sabha and BJP an absolute majority on its own for the first time in polls.
"Also, I think from the private sector point of view lot of activity will happen so I think India will again begin to grow later part of this year," he added.
On HR perspective, Chandrasekaran said: "We are happy that we have crossed three hundred thousand associates and we have a very energetic team and we have a best retention in the industry. We have also given an excellent hike of 8 to 14 per cent in India."
"We expect that on the people side we will continue to grow, we have already announced fifty five thousand people as the target for next year, already twenty five thousand offers have been made at the campuses.
So, we are looking good from the people's perspective." Chandrasekaran said: "All in all, I think we are happy where we are and we really looking forward to another strong year in FY'15."
Asked whether with the impact of elections and technology spend there will be turnaround in India business, he said, "I expect the India business to pick up with the kind of mandate that we got yesterday.
Both from the government spending because I do expect that the new government will adopt technology, and also the corporate sector I think we will see a revival across the board." "So, I do think that the domestic market will pick up but we need to wait, at least till September before we start to factor in anything," he added.
To a question on immigration bill, Chandrasekaran said ....in general we are in a state of readiness for any type of scenario that it may take."
"What we have also done is hiring in US has been stepped up, we have lot more local employees now and we have enough number of visas, so I think it is okay."