Despite a difficult macroeconomic situation, funding pledges for the digital push are still in place, according to the chief executive of Tata Consultancy Services Ltd., India’s top information technology services provider.
Following the release of their quarterly financial reports last week, India’s IT service providers said businesses in places like Europe and the US that were spending big during the epidemic have become cautious.
Several financing promises for digital transformation were made possible by the epidemic, said Rajesh Gopinathan, chief executive of TCS.
“Although there is less anticipation for the coming 12 to 18 months about digital transformation, financing promises have not changed. The crucial second leg of these transformation trips is what we are about to enter.”
Gopinathan was reappointed for another five years, from this year to 2027, after serving as the CEO of the IT powerhouse for five years.
TCS, located in Mumbai, released better-than-anticipated quarterly profits last week but cautioned that macroeconomic difficulties continued to make long-term transaction decision-making difficult.
However, the business added that it anticipates demand momentum to persist across all markets.
According to TCS, the order book for July through September remained stable at $8.1 billion, with more small- and medium-sized transactions than large ones.
“Both large and small deals are of equal significance to us. However, deal sizes often decrease as the environment becomes more unclear, “added Gopinathan.