Beijing, Apr 21: The Tata Consultancy Services (TCS) on Tuesday, Apr 21 has revealed that the company is expecting higher income in the fiscal year of 2010 and that it will be taking up cost cutting measures in the coming years.
Due to the increasing price competition and customers seeking lower costs, India's largest IT company will be forced to focus on cost reductions, said the company's Chief Executive Officer, S Ramadorai.
"I would like to see a 10 per cent year-on-year improvement in cost reduction," he said.
The company posted a 4.6 per cent rise in quarterly profit, that fell short of expectations. The company added that it expects prices to fall by lower single digits in the coming year.
"Profits will continue to rise, but at a slow pace," he said. "That is what we hope. "The challenges are definitely cost rationalisation and offshore leveraging," Ramadorai added.
He further said that TCS will not fall prey to the pressure on prices leading to the price war with competitors and try to focus on 'internal efficiencies'.