TCS optimistic on customer spending uptick in 2014

Summary:The outsourcing giant expects the industry to get a boost from its largest market, the United States, thanks to an improving economy.

Tata Consultancy Services (TCS) is expecting to get a boost in its next fiscal year thanks to an improving economy in its largest market in the United States.

"In the U.S., there's a lot of positive mood. Companies are feeling that there are growth opportunities," said N. Chandrasekaran, CEO of TCS, in a Reuters report. "We expect discretionary spending next [fiscal] year to see an uptick based on the conversations we have had."

Discretionary spending typically supports longer term projects and indicates the health of the industry, noted Reuters. It added US$108 billion-a-year sector draws about three-quarters of its revenue from customers in the United States and Europe.

Chandrasekaran added he expected pricing for TCS's services to remain stable in the next financial year.

In October, TCS booked its strongest volume growth in nine quarters for its Q2 results in line with positive results from the rest of the industry. It had booked a net profit of US$748 million on the back of a 14 percent rise in revenue lifted by the rupee's depreciation. 

Topics: Outsourcing, India

About

Loves caption contests, leisurely strolls along supermarket aisles and watching How It's Made. Ryan has covered finance, politics, tech and sports for TV, radio and print. He is also co-author of best seller "Profit from the Panic". Ryan is an editor at ZDNet's Asia/Singapore office.

Kick off your day with ZDNet's daily email newsletter. It's the freshest tech news and opinion, served hot. Get it.

Related Stories

The best of ZDNet, delivered

You have been successfully signed up. To sign up for more newsletters or to manage your account, visit the Newsletter Subscription Center.
Subscription failed.