TCS domestic revenue growth at 8-10%

The country's largest software exporter Tata Consultancy Services today said it is currently seeing an 8 to 10 per cent growth in domestic revenues and is eyeing a high double-digit growth in the next two years, as the deal cycle has returned to the pre-crisis levels.

"Current run-rate of ours in the domestic business growth is 8-10 per cent and we hope to maintain and take it to a high double-digit level in the next two years. The deal cycle has come back to normalcy...that is to the pre-crisis levels. The pricing is currently stable," TCS Chief Executive Officer and Managing Director N Chandrasekharan told reporters on the sidelines of the Nasscom Summit here today.

The company has signed a few large deals as well as a number of smaller ones in the recent past, Chandrasekaran said, adding, "the financial services sector will drive growth. We expect good growth from retail, pharma and utilities in the coming years."

The company, however, expects a lesser growth rate from verticals such as telecom and manufacturing.

Chandrasekaran said the company will hike salaries in the coming fiscal, but did not give details.

On the hiring plan he said,  "we are on a path to hire 1,000 people. We have already hired 300."

Asked about the extent to which India would be affected by the US move to slash tax-breaks to outsourcers, the TCS CEO Chandrasekaran said the matter is not an immediate concern.

US president Barack Obama last month had said his administration would "slash the tax-breaks for companies that ship our jobs overseas" and instead "give those tax-breaks to companies that create jobs in the country," which sent shivers down the industry's spine.

This is because the US accounts for almost 60 per cent of the IT exports from the country are to that market.

"The regulatory changes with regard to employment and outsourcing in any part of the world is something that we have to watch every day. You need to see how to align to that, but because of this, if you ask me if there is an immediate concern, then the answer is no," Chandrasekaran said.