'TCS not hit by US subprime crisis'
The top IT firm Tata Consultancy Services has not witnessed any impact of the subprime mortgage crisis in the US, which accounts for 50 per cent of its overseas business.business Updated: Nov 24, 2007 12:46 IST
Country's top IT firm Tata Consultancy Services has not witnessed any impact of the subprime mortgage crisis in the US, which accounts for 50 per cent of its overseas business.
"Though some of our clients are affected, they have not reduced their work (IT outsourcing) with us. We just have to watch the situation," company's Chief Executive Officer and Managing Director S Ramadorai said in Bangalore on Friday.
"The US is going through a budgeting cycle now. So, the implications of that will be known only in the new year. We have no answers as yet. It is not possible for me to predict anything at this point of time," he said.
He said "even in a downturn, if the cost reduction is going to be the a primary thing, it is always good for us as we will get more work."
Some of the financial institutions, Ramadorai said, were facing implications of the subprime crisis. "Even those clients who are in financial services are spread over multiple geographies," he added.
"We don't work for a single client out of the US. We have similar clients in Europe and other parts, Southern Asia and Asia-Pacific region," he said, adding that "our revenue from the US market is about 50 per cent as we have spread our business in other countries".
To a query on the domestic IT sector, he said "attrition rates are coming down and it signifies maturity (of the IT industry). The availability of talent pool is also increasing and the demand-supply situation is getting better".