Tata Consultancy Says Global Uncertainty Spurs Outsourcing Opportunities
By Ketaki Gokhale - Jul 15, 2011 8:29 AM ET
Tata Consultancy Services Ltd. (TCS), India’s largest software exporter, said it continues to see strong demand for its computer services as the global economic uncertainty prompts customers to adapt and outsource more work.
“The macro uncertainty is real and it’s not going to go away in the near future,” Chief Executive Officer N. Chandrasekaran said yesterday. “Everybody is getting adjusted to the operating environment but staying pretty much focused on what they have to do. That is driving opportunities.”
Tata Consultancy, which yesterday reported a 28 percent jump in quarterly profit, joins larger rival Accenture Plc (ACN) in signaling corporations are boosting spending on computer services and consulting. Chief Financial Officer S. Mahalingam has said the company expects to sustain 20 percent sales growth for the foreseeable future as outsourcing demand grows.
“Globally, information technology spending is expected to grow this year,” said Hitesh Shah, vice president of research at IDFC Securities Ltd. in Mumbai. “And as of now, that looks to be on track.”
Worldwide spending on information technology services is forecast to rise 6.6 percent to $846 billion this year, after growing 3.1 percent last year, Stamford, Connecticut-based researcher Gartner Inc. said in a report last month.
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