N Chandrasekaran, CEO and MD of Tata Consultancy Services (NYSE:TCS) says inorganic growth is a priority for the company at this point. He says the company is looking at inorganic growth to beef up its European presence.
India's top software services exporter reported a 38% rise in its fiscal first-quarter profit, beating market expectations, helped by a weaker rupee and increase in demand for outsourcing.
Chandrasekaran says the company is also considering platform-based opportunities.TCS could look at a deal size of USD 50 million to USD 500 million if the target is a strategic fit, says Chandrasekaran.
In contrast to Infosys, which is suffering from issues like huge liquidity, troubles from the mainstay BFSI vertical etc, TCS is seeing growth across all industry segments led by retail, telecom and BFSI.
In fact, Chandrasekaran thinks the concerns on pricing, budget cuts are "overstated". The company also reported balanced growth across IT and other service lines led by BPO, enterprise solutions and infrastructure services. Besides major markets like the UK, the US and Europe, TCS also saw increased traction from emerging growth market -- Latin America.
Chandrasekaran expects BFSI space to grow going forward. Overall, he expects this year to be better than last year for the IT bellwether.
TCS and Infosys are mainstays of India's USD 100 billion-a-year information technology and back-office services sector that earns about three-quarters of its revenue from exports to the United States and Europe.