The failure of the US senate to agree on a bailout package for the auto industry is not a major concern for India's largest information technology services provider, Tata Consultancy Services (TCS). This, despite the fact that one of the three Detroit auto firm Chrysler, is its client.
“As an industry manufacturing accounts for a sizeable revenue pie of the company. However, we are not unduly worried about it now. This a time when nobody is telling anything. And whatever you hear is purely guess,” said S Ramadorai, CEO TCS at the CII HR Summit. He, however, reiterated that the IT industry growth will not be same as last year, but will continue to grow.
He also said that as a part of a cost-cutting effort, the company might defer some capital expenditure. The company during its annual general meeting (AGM) held in July this year had earmarked Rs 4,500 cr of capital expenditure for the year. Of this TCS was to invest Rs 1,467 cr in equipment and Rs 3,000 cr in land.
On whether the global slowdown is one of the worst so far, Ramadorai said: “We have seen something like this in the past as well.
The recession in the 80s, and the Internet bubble burst but never before we have seen industry after industry getting impacted. While the respective government across the globe have stepped in and announced fiscal incentive packages, I think it’s not just quite about money but also the sentiment to buy.”
Ramadorai also spoke on the recent terrorist attacks on Mumbai. He said that he government should look at shifting some of the responsibility of protecting the citizens to the private sector. “The private sector has a role to play in enhancing the security of the country. I also feel that technology will be key in the future security systems,” he added.
He also believes that the current Arms Act in India is too stringent and needs to be relooked. “Too many fire arms in the hand of private security can be disastrous but with the recent happenings the government needs to relook at it.
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