Despite Cognizant revising its guidance for calendar year 2014 downwards , TCS CEO N Chandrasekaran believes the market is quite strong, customers are spending money, technology adoption is on the increase, especially the US, and the European markets are doing well.
He expects the industry and the broader market to continue to do well.
He feels that the Modi government will adopt technology in a big way. Though he doesn't expect immediate ramp up - in the next quarter or two – he says over the next four or six quarters, technology adoption in India will pick up and it is going to be a very buoyant market again for IT companies.
Below is the verbatim transcript of N Chandrasekaran's interview with CNBC-TV18's Shereen Bhan
Q: Like you Cognizant has been right up there beating sweet expectations. Today, they revised downwards their guidance for calendar year 2014 from 16.5 percent to about 14 percent fighting lack of visibility as far as conversion of sale cycles is concerned. Does that concern you and do you believe that this could have implications for the IT sector in general?
A: I have not really read their announcement, but from my perspective the market is quite strong, customers are spending money, technology adoption is on the increase especially the US and European markets are doing well. So I do believe that the industry and the broader market will continue to do well. There may be individual specific issues from time to time.
Q: So no change in visibility, I mean you have just announced your quarterly numbers but no change in visibility as far as you are concerned?
A: Yes, no changes in visibility.
Q: Congratulation on a market cap milestone the TCS has achieved, what is the next one on your horizon, what is the next target?
A: I don't have any specific targets. As long as we can keep addressing what we need to address from a customer perspective there is plenty of opportunity in the industry, there will always be aberrations in the quota.
Q: But are you feeling the burden of expectations because within the group you are the engine, you are the heart and soul.
A: I don't think too much about expectations because market always has a way of going out of bounds and coming back and correcting itself, etc. So we can't get carried away by that. Sometimes it just goes up, you don't know why, sometimes it comes down, you don't know why.
Q: But what is your sense about the domestic market. There has been a lot of talk about tenders, especially to do with railways and so on and so forth, how interesting is the domestic opportunity looking at this point?
A: The domestic market is a very large market. It is a market which has huge potential, but the last few years have been quite tough. As I have said in the past, things have not moved and we have seen delay in decision making, we have seen tremendous slowdown in the way technology adoption was happening; more to the public sector under the private sector.
Mood is positive now a bit. I do think that the new government will adopt technology in a significant way. So while I don't expect immediate ramp up in the next quarter or two but over the next four or six quarters I do believe that technology adoption in India will pick up and it is going to be a very buoyant market again for IT companies.
Q: Are you reading the comments that John Kerry made when he was here in India as far as the Visa issue was concerned and he said that Obama administration is open to some amendments to immigration bills to perhaps take into consideration the concerns that Indian IT has raised, how do you respond to that?
A: It is a very positive comment and I read that also in the media and that is a big positive. So as long as we can have the policy that is addressing the US requirements at the same time follow its clarity and addresses our concerns it is a good thing. We understand that there has to be jobs that need to be created and that is a requirement in every market today and we are thinking into that and we will do everything that we need to do but it is a very positive comment and I was quite happy to read that.
Q: How strong is the US economy looking and specifically from a business point of view because the economic data coming in from the US is looking strong which is now concerning investors that the Fed may in fact move as far as rate hikes are concerned sooner rather than later, are you seeing a tangible difference as far as confidence with your US clients are concerned?
A: I have always gone by what I hear from customers, then I take the macro view. I don't take the macro view first but having said that this time I am positive on both counts. What I hear from customers is that they are going to adopt technology; purely there is allocation of Budget towards transformation projects - whether it is in cloud infrastructure or digital initiatives across the board, across industries.
So I definitely think that from the client's point of view the market is strong and US declared a four percent Gross Domestic Product (GDP) growth which is pretty strong. So I really feel that US is going to do well. That is going to drive growth across sectors and so I am very positive of the US economy. Regarding the Fed I can't comment.
Q: But in terms of pricing do you believe that the pressure that you have seen in pricing and especially given the kind of competitive intensity we are seeing specifically among your peers here in India as well, do you believe that the pricing pressure is going to ease anytime soon?
A: We have been able to operate on a stable pricing environment, we have maintained that. In terms of increasing pricing that will only happen when there is large scale adoption of digital which is beginning to happen, it will take some time when there is a large scale adoption we will see a pricing uptick but as of now it is possible to operate in a stable pricing regime for the next few quarters.
Q: We have got a leadership change at Infosys; Vishal Sikka has taken over. What is your reading of the changes that Infosys and are you looking forwards to competing with him in the market place?
A: All are credible companies and I would like to wish them all the success and I will definitely wish Vishal good success. It is good for the industry and it is good for India.
Q: If I were to ask you should Infosys go in for a buyback or not what would you say?
A: It is a decision they have to make but I have only wishes.
Anda sedang membaca artikel tentang
Expect industry, broader market to do well: TCS
Dengan url
http://gayafashionshow.blogspot.com/2014/08/expect-industry-broader-market-to-do.html
Anda boleh menyebar luaskannya atau mengcopy paste-nya
Expect industry, broader market to do well: TCS
namun jangan lupa untuk meletakkan link
Expect industry, broader market to do well: TCS
sebagai sumbernya
0 komentar:
Posting Komentar