Tata Consultancy Services Limited : Tata Consultancy : Clients Continue to Spend on Discretionary Technology Projects
06/29/2012| 09:30am US/Eastern
By Dhanya Ann Thoppil
MUMBAI--India's Tata Consultancy Services Ltd. (532540.BY) said Friday its clients continue to spend on outsourcing projects which aren't critical, despite the weak business sentiment in a volatile global economic environment.
"The budgeting cycle is over and... the discretionary projects have also started kicking in," Chief Executive N. Chandrasekaran told reporters on the sidelines of the company's annual general meeting.
However, he warned that the economic recovery in major markets is likely to be a slow process.
The stance of India's largest software exporter by sales is in contrast with most of its peers, which have been struggling to build business in an uncertain environment. Second-largest Infosys Ltd. earlier this month warned that clients continue to delay decisions on technology investments, weighed by the global uncertainty.
Mr. Chandrasekaran said TCS is seeing a slowdown in decision-making in India, a market that accounts for less than 10% of the company's more than $10 billion revenue.
"The India business continues to be volatile," he said, citing slow investments in discretionary projects. "We don't expect a substantial increase in [revenue from] the India business."
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