While there is no major slowdown in new business, the information technology industry is facing a volatile environment with regard to rupee depreciating against the dollar in the last couple of months, according to Mr S. Mahalingam, Executive Director and Chief Financial Officer of Tata Consultancy Services.
“We have not seen a major slowdown in new business and new orders. We are waiting for the budget approach from companies and will come to know towards the end of 2011 or beginning of the next year.
“And, then we will know whether there is a change in spending pattern. We are continuously watching as there are many developments taking place, which needs a very close watch and the health of large undertakings in the financial space,” he told newspersons while responding to queries on what is the impact due to the global slowdown.
Contracts are with companies not with countries. Therefore, many of the companies that the company has contracts with are multinationals having global operations. They have also realised that to be competitive they have to go in for automation, he said.
Weak rupee
On rupee depreciation, Mr Mahalingam said, “We have to work on a very volatile environment.”
In July, the rupee breached 44 versus dollar; in September it touched Rs 50 and today it is around Rs 52.