TCS expects retail and manufacturing recovery in North America post positive trend in banking

From Investing.com: 2025-01-12 02:10:33

Tata Consultancy Services expects increased tech spending from retail and manufacturing clients in North America, following a positive trend in banking and financial services. Despite global economic uncertainties, TCS remains cautiously optimistic about a recovery. Revenue in North America declined for the fifth consecutive quarter, with retail and manufacturing being key revenue contributors.

Recent data shows a surge in holiday sales from major retailers like Walmart and Amazon, with U.S. online spending rising nearly 9%. TCS anticipates growth in its communications and media vertical if interest rates decrease. CEO Krithivasan believes the new U.S. administration will boost client confidence for discretionary projects, leading to a 5.6% increase in TCS’ Mumbai-listed shares.

TCS downplays concerns over insourcing by multinational corporations through global capability centers (GCCs), citing a potential market size of $105 billion in India by 2030. While GCCs may initially offer cost advantages, long-term cost productivity is key. In recent years, Infosys and TCS have acquired units of Danske Bank and Post Bank AG, respectively.



Read more at Investing.com: India’s TCS expects retail, manufacturing revival after banking recovery By Reuters