Tata Consultancy Services recently said that banking and financial space or BFSI will witness a slower growth owing to lower discretionary spend in the sector.
TCS Chief Executive Officer & Managing Director N Chandrasekaran said that growth in all geographies seeing an upbeat as discretionary spend (except in BFSI) is picking up.
“I see increased adoption of technology with growth in both US and Europe. We see good amount of growth in European markets and it’s sequentially improving for us,” said Chandrasekaran.
But Chandrasekaran also said he did not see deterioration in demand environment for IT services companies, despite the Euro zone woes.
“In fact, we (TCS) are seeing pick-up in Europe. In fact, our growth in Europe should be better (than in the US)...sequentially improving,” he said.
On the acquisition front, he said that it’s very difficult to find the right asset to invest in Europe and there’s no point in acquiring for the sake of doing it, however, they are looking for the right asset. “It’s very hard. I will also say that we are looking for the right asset. But it’s very hard, very hard because the assets available (for sale) for some reason or other, it does not work for us...doesn’t qualify the (our) needs.”
“It’s not that the (available) asset is bad or whatever, it’s just that what you need is not met”, he said, adding, TCS was very clear about what it wants and it takes time (to find the right target)”.
Nasscom had earlier predicted that the $100 billion Indian IT industry will go at 11-14% and Nasscom Chairman Chandrasekaran said that it will visit the guidance again in October when most companies would have disclosed their Q2 financial results. However, he maintained that TCS would surpass the target of 11-14%.
He also added that the company will remain strongly focused in US, Europe, Latin America, and Japan among other geographies.