IT major TCS on Thursday said that client spending on IT next year is likely to remain at the same levels as 2012.
The situation, according to S. Mahalingam, Executive Director and Chief Financial Officer (CFO), “would not be very gloomy’’.
“As per the initial indications that we have, budgets are expected to be at the same levels as last year, but the composition could change. However, the situation is not very gloomy,’’ Mahalingam told reporters here.
With 90 per cent of its revenues being from exports, most of TCS clients are expected to indicate their IT spends for next year around December 2012.
Composition of components
According to him, the IT budgets comprise various components such as hardware, enterprise solutions, network systems and services. It is likely, that while budgets remain the same, there might be a change in the composition of the components.
For example, a client might cut back on hardware spends and focus more on services.
Mahalingam added that initial indications point out that client spending will essentially be on new technologies, analytics and mobility. Spending on outsourcing by clients could also possibly increase.
“There are various surveys available that the budgets will be the same levels as this year .... But there are reasons to believe that outsourcing spends will increase,’’ he said.