Tata Consultancy Services (TCS) Executive Director K Krithivasan | Photo credit: Reuters
The customers of the Tata consulting services of India in the retail, travel and cars sectors are more exposed to the consequences of US tariffs and can resort to cost reduction if uncertainty persists, said the company’s CEO to Reuters.
The banking sector and financial services, which represents almost one third of the income for the largest software exporter in India, is not affected, said the executive director of TCS, K Krithivasan, in an interview.
The global trade war and the president of the president of the United States, Donald Trump, have hindered the forecast of market conditions, which makes companies hesitate to sign the great expenses decisions.
“The consumer business, the hospitality industry, travel and automotive industry are the companies that we have to monitor. If uncertainty continues for a longer time, these companies may have to focus more on cost optimization, but at this time,” I have not done it.
Retail trade and manufacturing are the second and fourth higher income taxpayers of the company, while the bank remains the largest.
TCS earns approximately half or its income from North America, a crucial market for Indian IT service providers who are exposed to the consequences of the rate through their US clients.
The company lost the estimates of the fourth quarter on Thursday and warned about customers who delay decision making in discretionary projects.
TCS, however, expects uncertainty to be “short -term”.
Krithivasan maintained the expiscal year 2026 to be better than 2025, since there were still inherited software and the systems that customers can have to replace in the medium and long term.
TCS also said that a client trend that consolidates their IT suppliers have helped the company gain market share.
“Participating when the client analyzes cost optimization as a key approach area, they will try to reduce the number of service providers. TCS has been a beneficiary of the consolidations that have happened in the fiscal year 2015,” said Krithivasan.
Posted on April 13, 2025