TCS CEO and Managing Director Mumbai, April 13 (PTI) K Krithivasan believes that the uncertainty arising from tariff actions will be “temporary” and expects it to be resolved within “months”.
The head of the country’s largest IT services company told PTI in an interview that the company’s more than $39 billion in orders will ensure TCS continues to earn bookings.
Krithivasan said the trading pipeline is “strong” and that the current situation where some customers stop spending at their discretion will not cause any pricing pressure.
In fact, pricing has risen slightly from a year and order perspective, he added.
Krithivasan said that in the absence of revealing the share of the excess spending of more than $30 billion in revenue from customers, this expenditure is a “significant” part of Topline, but seems uneasy about the current trend in which this revenue is affected.
“My belief is that this uncertainty will be short-lived. In a few months or other times, it will be resolved ….”
If the conversion of new transactions that convert total contract value or new transactions into revenue bookings falls, Krisivasan said there were no significant changes, adding that the uncertainty extended the changes for several months.
He said once this situation is resolved in the U.S., it will help the company resume growth in its North American business, which has dropped to 48%.
He said the progress in trade negotiations between India and the United States would not directly affect the company’s business, adding that the long-term lack of growth in North American countries would affect cross-sector customer decisions.
He said that in view of the main conditions, some customers are looking at cost optimization measures, adding that in this regard, customers are using supplier prices.
He said the company may have given some tactical discounts in some cases, reiterating that prices are still rising despite the uncertainty.
Krithivasan said that there is a problem with the impact on resource allocation in the ongoing challenges, with recent improvements in utilization.
He said the company hopes to maintain India’s 8% contribution to future revenue, although there may not be a share of BSNL, and it also helps the company expand revenue growth in an otherwise difficult fiscal year.
Krisivasan said the company saw big deals in the country, pointing out that banks could be one of the clients.
Krithivasan, who is about to complete two years of work on The Helm, said he has made some adjustments in the company’s structure, mainly as a response to the ongoing changes in the market.
He said AI and Cloud have become independent units that can collaborate when needed, adding that it has been placed with AI given the importance of data.
