TCS reviews capex plans to face global meltdown

Tata Consultancy Services (TCS), one of the top IT firms in the country, is reviewing its capital expenditure plans in the backdrop of the ongoing global financial meltdown.

"We may shift our focus from technology acquisition and infrastructure building as part of our capex review process," TCS Chief Executive Officer and Managing Director Subramaniam Ramadorai has said.

Talking to media persons on the sidelines of the "Internet Governance Forum" at the Hyderabad International Convention Centre here today, Ramadorai said the company had no plans to hand over "pink slips" to employees, but would focus on other cost-cutting measures like improving productivity and optimising human resources to overcome the economic slowdown.

In the last quarter, TCS' human resource utilisation was 81 per cent, he pointed out.

Asked if TCS would reduce its exposure to banking, financial services and insurance sectors, Ramadorai observed: "Consciously, we don't, but we are also looking at other areas."

"How you turn adversity into opportunity is vital. That's how we look at things. That's how we engage with our customers," the TCS chief said.

The current financial crisis in the global market provided opportunities in the long run and not for the short-term, Ramadorai noted, adding that "we will grow".

Earlier, addressing IGF, Ramadorai said the business community continued to play a significant role in helping more people to jump onto the "Internet Express".