TCS to review capex plans

Hyderabad: Tata Consultancy Services (TCS) is in the process of reviewing its capital expenditure plans for the current year due to the global economic crisis.

Speaking to the media on the sidelines of the Internet Governance Forum 2008 here, the Chief Executive Officer and Managing Director of TCS, Mr S. Ramadorai, said, “We may shift the capex plans in terms of delays in technologies, strategy and infrastructure plans.”

He said the financial crisis was for real and it had impacted not just one country or company, but the entire world.

According to him, TCS was taking cost cutting measures in terms of productivity improvement, improving utilisation rates of its employees, power, and travel, apart from capex reduction.

“Last quarter, the utilisation rates were around 81 per cent, but now we hope to enhance it to between 82 and 83 per cent,” he said.

Asked if the company was reducing its exposure to the banking, financial services and insurance (BSFI) segment, which was the major revenue earner, and diversify into other areas, Mr Ramadorai said the company would not consciously bring down the BFSI business, but would focus on other technology segments was well.

The company was ready to accept business in the BFSI segment as it had long-term contracts with clients.

Mr Ramadorai replied in the negative when asked if TCS was issuing pink slips to its employees.

Earlier, while addressing the IGF meet, Mr Ramadorai, who is also chairing the Business Action to Support the

Information Society of the International Chamber of Commerce, said that lack of dependable electricity sources created access problems to Internet for many people in developing countries.