Funding environment for digital push remains strong: TCS CEO

Funding commitments for digital push remain intact despite a challenging macro-economic environment, the chief executive of India’s top information technology (IT) service provider by market cap Tata Consultancy Services Ltd said on Monday.

After
reporting quarterly results last week, India’s IT service providers indicated that companies that were splurging top dollar during the pandemic have turned cautious in regions such as Europe and the United States.

The pandemic unlocked a lot of funding commitments in terms of digital transformation, TCS Chief Executive Rajesh Gopinathan said.

“When you look forward, for the next 12 to 18 months, that excitement level (towards digital transformation) has died down, but the funding commitments have not gone away. What we are getting into is the second leg of these transformation journeys, which is very critical.”

Earlier this year, Gopinathan completed five years as the CEO of the IT behemoth and was reappointed for another five years till 2027.

Mumbai-based TCS reported better-than-expected quarterly results last week, but flagged that long-term deal decision making remained soft due to macro-economic challenges.

Discover the stories of your interest



However, the company added that it expects demand momentum to continue across all markets.

July-September order book was steady and stood at $8.1 billion, consisting of several small- and medium-sized deals rather than large ones, according to TCS.

“We are equally interested in large and small deals. But as the environment turns more uncertain, deal sizes typically become smaller,” Gopinathan said.

Stay on top of technology and startup news that matters. Subscribe to our daily newsletter for the latest and must-read tech news, delivered straight to your inbox.

For all the latest Technology News Click Here 

Read original article here

Denial of responsibility! TechAI is an automatic aggregator around the global media. All the content are available free on Internet. We have just arranged it in one platform for educational purpose only. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials on our website, please contact us by email – [email protected]. The content will be deleted within 24 hours.