IT budgets, discretionary spends to rise in FY 12: TCS

Posted By: Pti
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Mumbai, Feb 8 (PTI) Tata group company, TCS, todaysaid IT budgets of clients are slated to increase inFY 12, especially their discretionary spends.

"Client''s IT budgets are seen increasing in FY 12 andwe also see more discretionary IT spending," the company''sChief Executive and Managing Director N Chandrasekaran toldreporters at a Nasscom conference here.

Industry body NASSCOM has said client budgets will goup by 2 to 4 per cent in FY 12 but Chandrasekaran declined togive a number for TCS'' expectations for the next fiscal. Hesaid conversations with some clients suggest an increase intheir IT budgets.

The Mumbai-headquartered company will focus on growthin non-linear segments which include platform business,outsourcing and small and linear businesses, he said.

A specific business stream it will be tapping intowill be IT projects of the US and UK Governments, he said,adding work from this area contributes less than one per centof total revenues currently.

As the demand for IT services keeps growing, it is"but natural" that pricing by solutions providers like TCSwill also increase, Chandrasekaran said when asked on thepricing outlook.

The Tata group company is always "interested inacquisitions and keeps scouting for a strategic fit for thecompany", Chandrasekaran said, answering a specific query oninorganic growth prospects.

Speaking at the same event earlier in the day,Union Telecom Minister Kapil Sibal had said India''s ITindustry will grow to USD 225-billion by 2020 from the currentUSD 67-billion.

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