TCS hints at price hike, sees growth across geographies

Software giant Tata Consultancy Services (TCS) today said it might see a rise in deal prices, giving better returns to the company, and exuded confidence that it would grow across geographies including the US and Europe.

"Pricing situation is very stable. If demand continues to be where it is...I think the prices [of deals] should go up," TCS CEO and MD N Chandrasekaran told reporters here.

He added that there had been 2-3% increase in prices in some deals signed over the last few months.

"Whenever renewal or new deals will come, we will look for price increase because there is cost increase," he said, but declined to comment on the timeline or by how much the pricing could go up.

Chandrasekaran was confident that the company will be able to maintain the growth momentum, even as the European debt crisis and high unemployment in the US are concerns that the $60 billion Indian IT industry is facing.

"We think the environment is good in spite of the macro economic uncertainty in different parts of the world. Some of the countries are failing in Europe and there is the issue of unemployment in the US, but still I think customers are going with their plans as they had originally intended," he said.

As long as the company is able to work with customers and stay close to them, "we will be able to deliver a good growth, capture the growth and make a difference", he added.

TCS business in Europe has seen double-digit growth, and other markets have also witnessed a strong momentum, Chandrasekaran said.

Indian IT majors get as much as 80% of their revenues from the US and European regions.

"I don't have any negative view from clients. Things are going as per plan. The customers are on track with their programmes. This time around, people understand the macroeconomic situation, so any plans that they have today is fully understanding the situation," he said.

Chandrasekaran explained that during the last economic crisis people were caught unaware and companies could not react immediately to the situation.

"This time people understand the macroeconomic situation, so any plans that they have today is fully understanding the situation," he said.

Chandrasekaran said he expects to see good growth in near term from European market as well. "Europe has been good for us...We don't have significance presence in Italy and Greece. In near term Europe looks good for us," he added.