TCS unaffected by subprime in US: Ramodorai
Mumbai, Nov 24 (UNI) Country's top IT major Tata Consultancy Services (TCS) has not witnessed any impact of the subprime mortgage crisis in the US, which accounts for 50 per cent of its overseas business.
''Though some of our clients are affected, they have not reduced their work (IT outsourcing) with us. We just have to watch the situation,'' said S Ramadorai, Chief Executive Officer and Managing Director of the company, today.
''The US is going through a budgeting cycle now. So, the implications of that will be known only in the new year. We have no answers as yet. It is not possible for me to predict anything at this point of time,'' he added.
He said ''Even in a downturn, if the cost reduction is going to be a primary thing, it is always good for us as we will get more work.'' Some of the financial institutions, Mr Ramadorai said, were facing implications of the subprime crisis.
''Even
those
clients
who
are
in
financial
services
are
spread
over
multiple
geographies.
We
don't
work
for
a
single
client
out
of
the
US.
We
have
similar
clients
in
Europe
and
other
parts,
like
South
Asia
and
Asia-Pacific
region,''
he
said,
adding,
''Our
revenue
from
the
US
market
is
about
50
per
cent
as
we
have
spread
our
business
in
other
countries.''
To
a
query
on
the
domestic
IT
sector,
he
said
''Attrition
rates
are
coming
down
and
it
signifies
maturity
(of
the
IT
industry).
The
availability
of
talent
pool
is
also
increasing
and
the
demand-supply
situation
is
getting
better.''
UNI