TCS CEO Krithivasan Expresses Caution Amid Slowdown Concerns

New Delhi: Tata Consultancy Services Ltd (TCS) is facing uncertainty about the ongoing economic slowdown, according to CEO K. Krithivasan. The company, which is India’s largest information technology services provider, is closely monitoring client spending in key markets such as the US, Western Europe, and the UK.

In a recent interview, Krithivasan expressed caution about the current market conditions and the impact on TCS’s performance. Despite a positive order book of $42.7 billion, the company is hesitant to declare that the worst of the slowdown is over. Krithivasan emphasized the need for vigilance and adaptability in the face of ongoing market uncertainties.

TCS recently reported a 1.93% sequential growth in dollar revenue for the April-June period, surpassing analyst expectations. The company also saw a significant increase in headcount, indicating positive growth trends. However, challenges remain, including geopolitical conflicts and central bank policies that are affecting client spending in the technology sector.

One of the emerging concerns for TCS is the rise of Generative AI, which some fear could disrupt traditional IT services. Krithivasan dismissed these fears, citing the evolving nature of technology and its impact on job creation. He emphasized the importance of leveraging AI technologies to bring differentiation to clients and drive innovation in the industry.

As TCS navigates the changing landscape of the IT services sector, the company remains focused on delivering value to its clients and staying ahead of industry trends. With a strong order book and a commitment to innovation, TCS is positioning itself for future growth and success in the global market.