ET Now caught up with N Chandrasekaran , Chief Executive Officer and Managing Director, Tata Consultancy Services , for his views on the deals bagged by the company, margins and hiring targets. Excerpts:
While you have seen excellent top line growth this time around, what are some of the large deals that you bagged this quarter and are there in the pipeline?
This quarter has seen a tremendous demand recovery and we have been able to catch up that and then executed very well. From a deal perspective, we have signed 8 large deals in the quarter -- two in the BFSI sector, two in the retail sector, one each in life science, insurance, media and the government sector. In terms of a pipeline, we are pursuing about 11 large deals across markets, across industries - a good pipeline indeed.
It is not just the US which has done well, but even continental Europe has contributed, and India is doing fairly well as well. You mentioned about broad-based growth across verticals. Would this also be across geographies for the next one or two quarters? Do you think almost all the geographies would contribute?
It is very difficult to tell about the next quarter. But this quarter we have seen growth across markets like the US, UK, continental Europe, India, and Asia Pacific - all of them have registered double digit growth. So the demand has been broad based both in terms of industries and also in terms of the geography markets. But the pipeline is healthy across markets and across industries. So I think the recovery will continue, but usually that quarter is a soft quarter with a number of working days being less. Also, some of the manufacturing and high tech companies go slow this quarter. So it is very difficult to say what the demand and the growth trend will look like in the Q3, but the environment out there is quite promising.
Are you worried at all with the kind of hiring target that you have set out for yourself - 50000, addition of 20000 - for the next two quarters?
The hiring target is based on the current rate of attrition and the future demands. In view of that, we have increased it by another 10000 from the target of 40000 we gave last quarter to 50000. So we are going to be recruiting more people, but obviously there are a few things that we need to worry about. I would like attrition to come down. I think 14% is quite a large number on our base. I would like to bring it down. Currency is a concern, rupee is appreciating and in the last few weeks it has gone by 6%. So that is a worry definitely.
Then, there is the regulatory environment. Any measure that may be taken in different markets is a concern that we need to worry about and obviously the macro environment is something that we need to watch out for. So these are the 3 or 4 concerns and worries.
While you have seen excellent top line growth this time around, what are some of the large deals that you bagged this quarter and are there in the pipeline?
This quarter has seen a tremendous demand recovery and we have been able to catch up that and then executed very well. From a deal perspective, we have signed 8 large deals in the quarter -- two in the BFSI sector, two in the retail sector, one each in life science, insurance, media and the government sector. In terms of a pipeline, we are pursuing about 11 large deals across markets, across industries - a good pipeline indeed.
It is not just the US which has done well, but even continental Europe has contributed, and India is doing fairly well as well. You mentioned about broad-based growth across verticals. Would this also be across geographies for the next one or two quarters? Do you think almost all the geographies would contribute?
It is very difficult to tell about the next quarter. But this quarter we have seen growth across markets like the US, UK, continental Europe, India, and Asia Pacific - all of them have registered double digit growth. So the demand has been broad based both in terms of industries and also in terms of the geography markets. But the pipeline is healthy across markets and across industries. So I think the recovery will continue, but usually that quarter is a soft quarter with a number of working days being less. Also, some of the manufacturing and high tech companies go slow this quarter. So it is very difficult to say what the demand and the growth trend will look like in the Q3, but the environment out there is quite promising.
Are you worried at all with the kind of hiring target that you have set out for yourself - 50000, addition of 20000 - for the next two quarters?
The hiring target is based on the current rate of attrition and the future demands. In view of that, we have increased it by another 10000 from the target of 40000 we gave last quarter to 50000. So we are going to be recruiting more people, but obviously there are a few things that we need to worry about. I would like attrition to come down. I think 14% is quite a large number on our base. I would like to bring it down. Currency is a concern, rupee is appreciating and in the last few weeks it has gone by 6%. So that is a worry definitely.
Then, there is the regulatory environment. Any measure that may be taken in different markets is a concern that we need to worry about and obviously the macro environment is something that we need to watch out for. So these are the 3 or 4 concerns and worries.
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