Tata Consultancy sees sales and profits slow as recession bites

News

Tata Consultancy sees sales and profits slow as recession bites

Antony Savvas

Indian outsourcing supplier Tata Consultancy Services (TCS) saw sales slow and profits stagnate during its last quarter.

Tata's experience is now an emerging pattern among Indian outsourcing suppliers, with the likes of Infosys also seeing its sales and profits growth slow recently. Wipro and Satyam have also warned of slowing profits growth.

Many outsourcing firms in India have been hit by the global slump in financial services, and the situation is set to worsen as western economies spiral into recession.

For the quarter ended 30 September, Tata saw sales increase almost 15% to around £923m. For the same quarter last year the firm saw sales growth of around 45%.

Profits growth was also well down at just over 3% when compared to the same quarter last year, at around £168m.

Tata said profits were affected by unsuccessful currency hedging by the firm.

TCS recently announced it was buying the business process outsourcing arm of Citigroup.

Related Topics: IT outsourcing, VIEW ALL TOPICS

Email Alerts

Register now to receive ComputerWeekly.com IT-related news, guides and more, delivered to your inbox.
By submitting your personal information, you agree to receive emails regarding relevant products and special offers from TechTarget and its partners. You also agree that your personal information may be transferred and processed in the United States, and that you have read and agree to the Terms of Use and the Privacy Policy.
 

COMMENTS powered by Disqus  //  Commenting policy