TCS CEO K Krithivasan says he is unsure when the macro uncertainties will subside. In his first interaction as CEO of India's largest software services company, Krithivasan told CNBC-TV18 that the company is re-assessing the investments that were done a year earlier.

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"If somebody tells us that, okay, it'll subside by next quarter, we'll say then from then on, there'll be more optimism. So till we have enough data, how can we tell you that it's going to be better now," Krithivasan said.

The TCS CEO also said that the Total Contract Value (TCV) continues to remain strong and that there have been no major project cancellations. TCS reported total deal wins of $10.2 billion for the June quarter, which was the highest in five quarters, and the second straight quarter of $10 billion plus in TCV.

When asked about whether more deal wins will get into execution this quarter compared to the last, Krithivasan said "I am happy to say yes, but I would not do it. I would want to hold it for at least a quarter before I can say that things are turning around."

TCS, on Wednesday, reported its slowest June quarter growth in a decade, excluding the Covid-19 period.

There have always been worries over companies like TCS losing business to Global Captive Centers (GCCs), but Krithivasan was quick to clarify that TCS has not lost any business to these GCCs and that they have a strong relationship and work with them.

"Not at all, like if you look at our own business, and how much did they lose to the GCCs, it's probably very marginal. I would say from our perspective it is almost zero," Krithivasan said, adding that they have not taken away 'any part of their pie' so far.

Speaking further on the macro uncertainties, Krithivasan said that there it is not a panic situation out there.

"There is a fear of impending recession that is what is causing this uncertainty. Once they know that there is not going to be recession or there is going to be recession by this quarter, they will be able to plan for it. Today they know the governments are pushing for a slowdown and it is not happening. So they don't know where it will end. And that's where the caution comes in," the TCS CEO said.

(Edited by : Hormaz Fatakia)

First Published:Jul 13, 2023 8:44 AM IST