Tata Consultancy Services today reiterated that it will exceed Nasscom growth estimates at a time when some of its peers have evinced growth concerns.
The $100-billion Indian IT sector is estimated to grow in the range of 11-14 per cent for FY13, according to Nasscom. The $10-billion TCS, which competes with Indian and global companies such as IBM and Accenture, is bullish on growth, if it can manage the rupee volatility, according to N. Chandrasekaran, CEO and MD, TCS.
Competitor Infosys has given a 5 per cent growth guidance for FY13, citing lack of outsourcing projects and some of its clients ramping down outsourcing work.
In the period April-June, the rupee depreciated over 9 per cent against the US that has resulted in foreign exchange losses. The company incurred a forex loss of Rs 93.7 crore.
In July, TCS CFO S. Mahalingam had said that the company has hedged its revenues at an exchange rate of around Rs 52 a dollar until December-end. In the last quarter, due to currency fluctuations, the company has changed its strategy by switching to plain options instead of long term hedges. However, Chandrasekaran said that it continues to be bullish on outsourcing demand. “There are growth opportunities in all geographies and we continue to see increase in technology adoption,” he told Business Line .
While saying that clients have slowed down decision-making, Chandrasekaran said that overall technology spending would not reduce.