Bangalore, Jun 18: While the world of business seems to be drowning in pessimism over the recession; Tata Consultancy Services seems to believe that the decline in the outsourcing demands in have been 'arrested' and that recovery is set to happen soon.
“We feel the conditions are little clearer in the sense demand for outsourcing in terms of decline arising out of global meltdown seems to have been arrested," TCS chief financial officer S Mahalingam said.
However, he did admit that his firm was waiting for the demand to pick up. This is due to cautious attitude of the enterprises after the fall of Lehman Brothers in the United States.
“At that point of time, many clients across industrial verticals, including the banking, insurance and financial services (BFSI) had slashed their IT budgets resulting in demand crunch and pricing pressure," Mahalingam said.
And added that one has to wait see if the demand will reach a plateau or take a 'v" shape in the near future, as discretionary spending on new projects or contracts had declined over the last two-three quarters.