BENGALURU:
Financing commitments for digital push remain intact despite a challenging macroeconomic environment, the chief executive of India’s number 1 information technology services firm Tata Consultancy Services Ltd said on Monday.
After reporting quarterly results last week, Indian IT service providers indicated that companies spending a lot of money during the pandemic have become cautious in regions such as Europe and the United States.
The pandemic has unlocked many funding commitments in digital transformation, TCS Chief Executive Rajesh Gopinathan told Reuters.
“If you look ahead, over the next 12 to 18 months, that level of excitement (towards digital transformation) has abated, but the funding commitments have not gone away. What we are embarking on is the second leg of these transformation journeys, which is very critical.”
Gopinathan completed five years as CEO of the IT giant earlier this year and was reappointed for another five years until 2027.
Mumbai-based TCS reported better-than-expected quarterly results last week, but noted that long-term decision-making remained soft amid macroeconomic challenges.
However, the company added that it expects demand momentum in all markets to continue.
The July-September order book was stable at $8.1 billion, made up of several small and medium deals rather than large ones, according to TCS.
“We are equally interested in large and small deals. But as the environment becomes more uncertain, deal sizes tend to get smaller,” Gopinathan said.
(Reporting by Nallur Sethuraman in Bengaluru and Munsif Vengattil in New Delhi; editing by Shounak Dasgupta)