Business

TCS reviewing expenditure plans

HYDERABAD: Tata Consultancy Services (TCS) is reviewing its capital expenditure plans for the current year due to the economic meltdown.

Responding to queries of presspersons here on Wednesday, CEO of TCS S. Ramadorai said: “We may shift the capital expenditure plans in terms of delay in technologies and acquisitions and infrastructure plans.”

The financial crisis in the world was for real and it impacted not just one country or company, but the entire world. Since the company did not give any revenue guidance, the question of revising it upwards or downwards did not arise. And, the impact of slowdown on the revenues in the third quarter could not be predicted.

TCS was indeed taking cost-cutting measures in terms of travel, communications, energy, miscellaneous expenditure and capital expenditure. The capacity utilisation rate, which was at 81 per cent, would be enhanced to 82-83 per cent.

Asked if the company was reducing its exposure to the BFSI (banking, financial services and insurance) segment, which was the major revenue earner, and diversifying into other areas, Mr. Ramadorai said the company would not consciously bring down its BFSI business. “Whoever wants to give business in the BFSI segment, we will accept it,” he observed.

He, however, said that the company would focus on the other technology segments. Asked about issuing of pink slips to employees, he said: “We are not giving pink slips. We are trying to make use of the resources by enhancing their skills to increase our productivity”.

Earlier, Mr. Ramadorai, who is chairing the Business Action to Support the Information Society (BASIS) of the International Chamber of Commerce, said at the opening session of the Internet Governance Forum that lack of dependable electricity sources created access problems to Internet for many people in developing countries.

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