TCS sees opportunities amid downturn after Wipro, Infosys brush off recession concerns

Indian outsourcing leader 1lata ConsultancyServices (TCS) sees opportunity as corporate

customers embrace new technology, although a poor economy means that overall spending in the
United States and Europe will stay weak.

TCS, whose clients include British Airways. ING and gamemaker Electronic Arts. says
economic recovery and eyeing cautious investment for
companies have adjusted to a faltering are

future growth.

customer is being extremely careful

It's very sensitive time in the world. Every industry, every
a
where not
with what they do and they are being very disciplined in terms of where to spend and
to spend." Chief Executive N. Chandrasekaran told Reuters in an interview on Wednesday.

Chandrasekaran said he was optimistic that TCS can take advantage as corporations use social
media to improve workflow, migrate data to remote computers and allow access to corporate
information on mobile devices such as Apple's iPad.

"There's a lot of business to long as you are staying close to the customer," he said. "lf
be had as
is
you look industry by industry you can easily pick four or five trends the customer spending
money on.

and
Officials from TCS's two smaller rivals in India's back-office services industry. Infosys
of a possible recession in the
Wipro. last month also brushed off concerns about the impact
United Sates and Europe.

TCS added almost 70,000 jobs last year and now employs almost 200,000
IT consultants. the
bulk of them in India. It is India's top software exporter and it makes more than half its revenue
from US companies.
Last year, the company increased wages between 12 and 14 percent and Chandrasekaran said
wages will remain under upward pressure next year, given that India's central bank is strugg!ing
to tame inflation. Hiring rates remain on track.

Chandrasekaran declined to comment on reports that TCS was looking to buy the 1T unit of
He
German airline Lufthansa but said the company is on the lookout for strategic opportunities.
mentioned assets in US healthcare as particularly attractive.

O. Why TCS is not among worried lot even after the downturn? Does the story has a message as to how

companies should face downturn? If yes, elaborate.

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