TCS in Trouble - US clients postponed IT orders to Next Quarter
some of the major US clients are postponing IT projects to the next quarter. This was revealed by the management of Tata Consultancy Services (TCS) today.The company’s Chief Operating Officer N Chandrasekaran said this was expected. “Clients are delaying their projects this quarter. It is not cancelled but it is not happening this quarter as was expected,” he maintained. The statement is a clear hint from India’s largest IT company that the sector will have to live with sluggish growth, at least for the near term.
TCS earns about 30 per cent of its topline from top 10 clients as of last quarter. And the impact of delayed projects will pull down any incremental growth in that percentage going forward. The company has launched a strategic business unit to tap small and medium enterprises between Rs 100-500 crore in size at home. It is also targeting over Rs 2,000 crore in revenue from domestic market alone before it replicates the model elsewhere.
One response so far
For a Company like TCS that has build the Software & IT Consulting Industry, pioneered the Global Delivery Model and started the concept of offshoring 4 decades ago, 1 quarter is not what the company thrives for.
The strong leadership and committed teams across the globe are working as a unified team to ensure that the company reaches global top 10 by 2010.