Software Services Pricing Power to Stay Weak: TCS CEO
Tata Consultancy Services' 33% increase in third quarter earnings may have beaten analysts' estimate, but India's largest software outsourcing firm does not see pricing power in the sector returning for the next few quarters, Managing Director and CEO N Chandrasekaran told CNBC on Monday.
"The pricing has been flat this year, and we expect it to be flat for the next few quarters." said Chandrasekan, adding that he expects pricing power to pick up only in the latter part of 2011.
In terms of sectors, Chandrasekaran said the company's biggest growth comes from financial services. But the sectors with the most difficulties were seen in manufacturing and telecom.
When it came to markets, he was upbeat on the U.S. as well as emerging markets.
"All the emerging markets like India and Asia Pacific both delivered exceedingly well."
Overall, Chandrasekaran was very positive on Tata Consultancy's volume growth.
"I think we have had three good quarters this year, progressively getting better, and the distinguishing feature has been that we have seen a good volume growth come from across markets. All I would say is that increasingly we are becoming more and more positive and the outlook seems to be good."