TCS to focus on reducing volatility in its India biz

Tata Consultancy Services (TCS), today said it was focusing on reducing the volatility in its India business.     

In Q2 FY 09, the IT company has grown in all markets across the globe, but has reported a drop in growth in India.     

"We are trying to reduce the volatility in India," TCS' Chief Operating Officer, N Chandrasekaran, told reporters here.     

Many contracts in India which TCS handles, are project-based, unlike others that are annuity-based. The revenues in project-based contracts are cyclical, he said.     

The company declared its Q2 FY09 results yesterday. Its India business forms 7.8% of revenue whereas last year for the same corresponding period it was 8.2% of revenue.     

The company is looking at its India business on a year to year basis rather than on a quarter to quarter basis, he said.     

"Huge amounts of work needs to be done in India," he said.     

Ten days ago, the company announced it has entered into a Rs 1,000 crore contract with the External Affairs ministry for an e-governance project.