Euro woes to impact revenue: TCS

Though the largest software exporter Tata Consultancy Services on Friday asserted that the lingering European debt crisis has not yet impacted its business, it admitted that weakening of the euro and pound against the rupee will have some adverse impact on its revenue if the trend continues.

"In general the euro and the pound are weakening. It is a cause for worry. But the dollar is strengthening (and therefore) the impact will be lesser due to the weakening of the sterling and the euro," Tata Consultancy Service chief executive N Chandrasekaran said.

It can be noted that country's IT exporters net around a third of their revenues from the EU markets while nearly half of their income come in from the US and Canada. TCS has not seen any direct impact on its business so far, he said, adding, "we have to watch the situation carefully on what kind of impact it has (on us).

Commenting on the situation that emerged in Britain following the change in government, Chandrasekaran said, "we have been in touch with the clients and the projects are on track at this point of time."

It can be recalled that the now ruling Conservative Party, during the campaigns had said that it would cancel a 600-million pound contract won by TCS from the British personal accounts delivery authority (PADA).

And following the 6.3-billion pound cost-cutting drive announced by the new Conservative-Liberal Democrat coalition government, the fate of the PADA deal uncertain now as the new chancellor George Osborne had on May 18 said all major expenses approved by the former Labour government after January 1 would be reviewed.

Commenting on the revival of the global economy, he said, "we are seeing significant opportunity in the US. We have identified cloud computing as the biggest opportunity for creating more business models," he said, but added that the recovery is slow in Europe even now.

On the domestic market, Chandrasekaran said, "he is very very bullish about it. We are confident of a decent growth this year by overcoming volatility." On why there have been no acquisitions in the recent past, he quipped, "We have not found the right asset".