Tuesday, January 20, 2009

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TCS sees up to 20% cut in IT budgets

Country's largest software exporter Tata Consultancy Services (TCS) today said it expects a five to 20 per cent cut in the IT processes outsourcing budget of its clients following the global economic slowdown.

"Clients are looking at cutting budget (amid the slowdown) ...certainly there will be a reduction, in some cases it could be 10 per cent and could go up to 15 or 20 per cent or could be five per cent also," TCS Executive Director and Chief Financial Officer S Mahalingam said on the sidelines of the CII Partnership Summit.

After the Satyam scandal, it was believed that other Indian IT companies would have to bear the brunt of it as the international clients have become wary of the corporate governance mechanism in the country.


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