TCS to focus on differentiated distribution

Rajesh Gopinathan, chief financial officer and vice-president, Tata Consultancy Services (TCS), prefers a wait-and-watch strategy on visa issues in the US.

“We are broadening our delivery model. We are moving to a model based on different solutions for different customers,” said Gopinathan.

TCS said it applied for one-third the number of visas in 2016-17 than it did a year ago. The company said it would explore automation, global delivery models and local hiring to offset dependence on US visas.

“In the current era there needs to be a high-touch environment, and this is clubbed with uncertainty. The momentum automatically shifts to on-location activity, and as you move to more mature models the activity shifts to efficiency. This is part and parcel of the technology cycle,” Gopinathan added.

When asked if he saw the India-based delivery model changing, Gopinathan said it was early to predict that. “We are talking about a market that is supply constrained and where demand is booming. Engineering talent is pulled in by Silicon Valley and those that are available do not match up to the technology skills that are required,” he added.

Gopinathan declined to comment on the demand environment in the US and the UK. “Given the events unfolding in the past six months, we feel the best strategy is to be light on feet, be close to customers, and be prepared for any uncertainty,” he added.

The Indian IT industry has been facing headwinds due to several global events like the US presidential elections, enterprise investment cycles affected by the digital disruption, and Brexit.