IT services major Tata Consultancy Services (TCS) expects India to account for an increasing share of its business in the future. The company feels that the Indian business has achieved critical mass in India and expects the volatility in its reduce significantly in the coming quarters. TCS gets close to 10 per cent of its revenues from India, a much larger share compared to the other IT firms.
“Now that we have achieved critical mass in the India market, we are looking to achieve incremental growth in the otherwise volatile India market,” said Mr Chandrasekharan, CEO, TCS. “The volatility in the business here is due to the fact that we have no annuity revenues, from long term contracts which we typically engage in with the mature Western markets,” he said. While IT spending in the India market is on the rise over the last few years, it is still much smaller than other markets, he added.
He said the European crisis has had no direct impact on TCS so far, but they will watch the situation carefully to assess the impact.
On TCS’ offering in the cloud computing space, he said, “We are currently conducting pilots with the banking, SME customers in India, besides the BPO platform in MNCs. Cloud computing for enterprises is a new business model that they have to get used to, therefore, adoption will take time.”
TCS plans to grow its non-linear business through its products and cloud computing offerings. This is expected to contribute around 10 per cent of incremental revenue in the last few quarters of fiscal 2011.