The tumbling euro and the British pound will impact revenues of TCS, India’s largest IT services exporter, its CEO N Chandrasekaran has said. He added the effect was likely to be moderated because of higher exposure to the dollar. While the firm has not seen any direct impact to its business because of the sovereign debt crisis in Europe, the executive said the firm will watch the situation carefully.
?Both the euro and British sterling are significantly weakening. That will definitely have an impact on our revenue line. However, in the last two weeks, while these two currencies are weakening, the dollar is strengthening. The exposure of UK and European business is far lesser than the dollar revenue. To that extent, the impact for us will be lesser,? Chandrasekaran, who was in Bangalore on Friday, said.
?We have deals across sectors now ? in application management, infrastructure, and BPO. They are happening in the US and in emerging markets,? he said. Europe may continue to be slow given the current crisis. ?Recent reports had highlighted another headwind in the UK ? the newly formed coalition government in the country is expected to review multiple outsourcing contracts to cut government spending. TCS had previously inked a pension administration contract. The CEO reiterated everything was fine, as of now.