TCS puts up brave front against Re
The appreciating rupee is unlikely to affect the operating margines of Tata Consultancy Services (TCS) according to its CEO Ramadorai.
The rupee has appreciated against the doller by over 9% in the last three months, severely impacting the earnings of the IT sector. However Mr.Ramadorai said that any drastic appreciation of the currency from the current levels will see an overturn of the existing business model of Indian IT companies.
TCS, in fact, has taken a forward cover of $2.5 billion to hedge against the appreciating rupee. Mr.Ramadorai said this is the strongest external challenge being faced by the Indian IT companies and they will now have to look at innovative ways of doing business which will bring in higher margins and business. Tata Consultancy Services also announced that it is focusing on multi-million doller deals in the financial services sector through its product division TCS financial solutions.
The division carved out of its BFSI (banking, financial services and insurance) segment is looking at deals anywhere in the range of $5 to $200 million. Mr.N.G.Subramaniam, president, TCS financial solutions said there were over 150 deals available in the market.
Mr.Subramaniam said that the company is looking at various midels ti sell its services and will be competing with global majors as well Indian Companies. Mr.Ramadorai said that the financial solutions unit will be integrated across its global delivery network.
