TCS Expands Market Reach Beyond US Amid Economic Challenges

15 Jan 2024 , 02:32 PM

Tata Consultancy Services, India’s leading software services exporter, plans to increase its attention on countries such as Japan, Latin America, and Southern Europe in response to difficulties in North America, according to its CEO.

The move to diversify comes as the industry leader announced its weakest quarterly profit growth since 2020, and sales contributions from its major market, North America, have fallen for four consecutive quarters.

North America has been critical for the $245 billion Indian information technology sector, with numerous businesses generating more than half of their revenue from the area. IT clients have been hesitant to spend on discretionary initiatives in recent quarters due to inflationary pressures and economic uncertainties.

TCS is now looking at additional areas with significant development potential despite language and other hurdles.

According to Krithivasan, Japan’s income contribution to the Indian IT sector is ‘very miniscule’ despite the country being one of the major tech spenders. TCS, situated in Mumbai, has traditionally generated more money by catering to clients from other countries, but it is now focusing on its own market.

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